Which of the following is an advantage of the cash payback method? a. takes into consideration the time value of money b. easy to use c. includes the cash flow over the entire life of the proposal d. emphasizes accounting income

Which of the following is an advantage of the cash payback method? a. takes into consideration the time value of money b. easy to use c. includes the cash flow over the entire life of the proposal d. emphasizes accounting income

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: An example of a cash inflow from investing activities is:

A: The investing activities of a cash flow statement include the purchase and sale of fixed assets and…

Q: Which of the following is true of the cash payback period? a.the longer the payback, the longer the…

A: Payback period is the period under which the amount of investment is expected to be recovered.…

Q: w does stretching out AP enhance cashflow? be specific in terms of operating cashflo

A: Cash flow are very important for any firm because without cash no business can survive for much…

Q: Finding the present value of future cash flows is called O A. analytics, tracking and finding the…

A: Capital Budgeting: It is a process a company undertakes for the evaluation of potential investments…

Q: The amount of time needed to recoup one's initial investment is referred to as the payback period,…

A: The cash payback method is a popular technique used by businesses to evaluate the potential…

Q: what are the major advantages of the indirect method of reporting cash flow from operating…

Q: esearch articles that deal with the benefits which might be derived from the Statement of Cash…

A: In accounting cash flow statement is that financial statement that shows different soucres of cash…

Q: Describe similarities between the indirect and the direct method of te statement of cash flow.…

A: Cash flow Statement-It is a statement that shows inflows and outflows of the cash and cash…

Q: Which of the following is an approach to value? Pick the best answer. Question 1 Select one: a.…

A: Valuation is the process of determining the true fair or intrinsic value of the share of a company…

Q: What are net operating loss carryforwards and how can they provide cash savings?

Q: What is cash conversion cycle and how is it different from operating cycle?

A: Cash conversion cycle: It is a way that helps a company to determine how much it requires to convert…

Q: In a few sentences, answer the following question as completely as you can. What are the four…

A: A cash flow statement is a financial statement that provides information about a company's cash…

Q: A project can have as many different internal rates of return as it has: O changes in the sign of…

A: The internal rate of return (IRR) is used to measure the profitability of investments. It is the…

Q: The costs or benefits of holding or not holding money over time refers to the concept of: the time…

A: The time value of money (Correct): The time value of money is a financial concept that suggests that…

Q: Determining the future value of one or more present day cash flows is known as ________. A.…

A: Future value is known as value in the future of present cash flows

Q: The payback criterion has problem(s) like Select one: O A. It considers the time value of money O B.…

A: The payback period refers to the period that is consumed by a project for meeting all its initial…

Q: Finance, or financial management, requires the knowledge and precise use of the language of the…

A: The time value of money is the core valuation concept that accounts for the effects of compounding…

Q: How can we estimate the profits (more precisely, the cash nows) that the assets will generate during…

A: It is a process of acquiring an approximation or projection or forecast of a firm’s future budgetary…

Q: How are incremental cash flows found in a replacement analysis?

A: The choice to substitute an existing asset with another is defined as the net current and internal…

Q: . which cash flow method presentation is easier to understand: direct or indirect? b. explain the…

A: This question require us to answer which method is easy for presentation and explanation of three…

Q: Which of the following phrases best describes the term " actual cash value"? a. market value b.…

A: Actual cash value is the actual amount at which the property could be sold and it is usually less…

Q: Discuss arguments supporting the need for improving the Statement of Cash Flows (SCF). What…

A: 1. The SCF is an important financial statement for understanding the financial health of a business.…

Q: In terms of future value (FV) which of the following considerations is correct? Select one: O A.…

A: The time value of money states that the money received in the future is a lower worth than the money…

Question

Which of the following is an advantage of the cash payback method?

a. takes into consideration the time value of money

b. easy to use

c. includes the cash flow over the entire life of the proposal

d. emphasizes accounting income

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

AI-Generated Solution

AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.

Unlock instant AI solutions

Tap the button
to generate a solution

Click the button to generate
a solution

SEE SOLUTION

Similar questions

The cash flow cycle also is known as the: Select one: a. cash conversion cycle. b. cash-to-cash cycle. c. working capital cycle. d. revolving credit cycle.
Is cash flow more reliable than accounting profit? Which one is more useful?
All parts detailed or skip
be appropriate? Explain. 8.4 Average Accounting Return Concerning AAR: LO 2 Describe how the average accounting return is usually calculated and describe the information this measure provides about a sequence of cash flows. What is the AAR criterion decision rule? a. b. What are the problems associated with using the AAR as a means of evaluating a project's cash flows? What underlying feature of AAR is most troubling to you from a financial perspective? Does the AAR have any redeeming qualities?
How capital expenditure(investment) analysis helps in evaluating the inflows and outflows of cash?
What is meant by an incremental cash flow? What do you need to ask yourself when deciding whether a cash flow is incremental or not? What types of incremental cash flows are there?
The discounted payback method discounts cash flows at the opportunity cost of capital and then calculates the payback period. TRUE/FALSE?
Explain in detail with examples of different methods for cash transactions, and the costs associated with each. Provide brief justification on how these costs can be reduced?
How should I think about the discount rate in a discounted cash flow model, and what it means (in real life)? And where do I find inputs for the discount rate? How is it calculated?