Which of the following statements is not true as regards to matching strategy? a. all assets should be financed with permanent long-term capital. b. temporary current assets should be financed with temporary working capital c. permanent current assets should be financed with permanent working capital. d. long-term assets should be financed from long-term capital.

Q: Which of the following is an advantage of using the payback period method for project selection?…

A: The objective of the question is to identify the advantage of using the payback period method for…

Q: Capital budgeting is the decision making process used in the acquisition of long term physical…

A: It is a decision making process which is used by the firm about the acquisition of long term…

Q: How can we determine the period necessary to recover both the capitalinvestment and the cost of…

A: The Payback period (PBP) determines how long it would take a company to recover the investment. PBP…

Q: 1-Aconservative financing policy indicates that investment in fixed and current assets is funded by…

A: The question is based on the concept of financial policy , payback period and expected average rate…

Q: What is the benefit of increasing fixed assets over current ones?

A: On a company's balance sheet, fixed assets and current assets are two asset categories that are…

Q: GAAP provides guidelines for the inclusion of interest in the initial cost of a self-constructed…

A: 1.

Q: Define each of the following terms: f. Nonnormal cash flow projects; normal cash flow projects;…

A: Non-normal cash flow projects: This is otherwise called an unconventional cash flow venture that…

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: Question One a) Explain the role of the main counterparties (sponsors) to a concession agreement…

A: In a concession agreement under a Special Purpose Vehicle (SPV), sponsors are pivotal counterparties…

Q: Which of the following inputs provides the least subjective (i.e., most objective, requiring no…

A: Valuing financial investments is the process of determining the current worth or fair market value…

Q: Restrictive short-term financial policies with regard to current asset management include three…

A: Current asset management is managing or handling the current assets of a company. Current assets…

Q: What are the after effects (both short term and long term) of capitalizing the cable costs of…

A: Capital expenditures (CapEx) are cash outlays made by a company to purchase, improve, and maintain…

Q: Which of the following items are required to analyze a capital expenditure? (Select all that apply.)…

A: To analyze a capital expenditure, the primary focus is to understand the cost of the expenditure and…

Q: Which of the following working capital strategies is the most aggressive? a. greater use of…

A: working capital is the difference between the current asset and the current liabilites. Agreesive…

Q: the inflows and outflows method, the following are considered exceptional inflows: A) Interest…

A: Inflows and outflows method specifies the process of evaluating all the desired cash that comes into…

Q: One of the following methods are not a method to evaluate projects: Return on investment Discounted…

A: Capital budgeting: It implies to the process of evaluating different projects based on their…

Q: Explain this concept: “The cost of capital depends primarily on the use of the funds, not the…

A: A company’s cost of capital can be said to be that minimum rate of return that the company or the…

Q: Allied uses debt in its capital structure, so some money use to finance the project will be deb.…

A: Capital budgeting is the process of evaluating and selecting long-term investments based on their…

Q: O a. revenue estimates. O b. current fixed asset levels. O c. qualitative factors. Od. currency…

A: The process of assessing a long-term investment's potential profitability is known as capital…

Q: Which of the following is a criterion for a capital expenditure? a.It should increase the…

A: Capital Expenditure: It is the amount that a company spends on the development of machinery,…

Q: each of the characteristics apply to large deductible plans. A. Degree of loss sensitivity B. Cash…

A: Large deductible plans : It is an employee compensation insurance plan. It is an insurance plan for…

Q: Which one of the following activities best exemplify capital structure decisions. For this exercise…

A: Capital structure is the combination of debt and equity used by a firm. A fine capital structure…

Q: How can we determine after-tax cash flows for an investmenta project with only operating and…

A: Discount rate is the weighted average cost of capital (WACC) which is used in the project.  WACC is…

Q: 2. Which of the following best explains the meaning of the term 'capital expenditure'. Capital…

A: Capital expenditure is the long term expenditure of the company.

Q: Identify and discuss the two components of contributed capital

A: Contributed capital Contributed Capital is the price that the share holders have given to the…

Q: The available capital funds are to be carefully allocated among competing projects by careful…

A: The company should invest the capital funds in such a manner that provides the maximum profit to the…

Q: Which of the following scenario shows the financial manager’s financing function? a. Prioritizing…

A: Financial manager's functions include: a) Getting financing at lower cost b) Planning and allocating…

Q: The cost of capital used in capital budgeting should reflect the average cost of the various sources…

A: Cost of capital reflects long term funds like debt and equity yo acquire assets

Q: None

A: Option a: This option is  incorrect because time value of money is the expression of the value of…

Q: What is the difference between independent projects and dependent projects? a: Independent…

A: There is a difference between dependent project , independent project and these and analysis help in…

Q: t are the long-term sources of finance? Give various sources from which the long-term funds can be…

A: Step 1 The financial market, specialized financial institutions, banks, non-bank financial…

Q: 1. The comparison of the expected future streams of earnings from a project, with the immediate and…

A: Statement- The comparison of the expected future streams of earnings from a project with the…

Q: The comparison of the expected future streams of earnings from a project, with the immediate and…

A: Capital Budgeting: Evaluation of  investments and  huge amount of expenses in order to obtain the…

Q: The area of financial management that addresses the optimal choice for long term assets is

A: The long term assets are all such assets which are used by the company for more than one year and…

Q: Short term investment decisions are also called as Select one: O a. Liquidity decision b. Finance…

A: Investment decisions can be both short term and long term

Q: Capital expenditure projects may be classified in all the following types EXCEPT ____.   a.…

A: The practice of limiting the number of fresh investments or ventures pursued by a corporation as…

Q: Net present value and the payback period are examples of discounted cash flow methods used in…

A: Various methods used in capital investment decisions are Pay back period, Accounting Rate of…

Q: Identify which one of the following is not the importance of capital market? a. Effective…

A: Capital markets are very important for countries to grow business and mobilize money.

Q: Explain the uses, limitations and merits of the Payback Period compared to Net Present Value in…

A: The payback period method is a capital budgeting method for discovering the period in which the…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.