Which one of the following methods is based on net profit rather than cash flows? a. net present value b. payback c. internal rate of return d. accounting rate of return e. profitability index

Q: Which of the following is NOT one of the ratios in Profitability group? Select one: a. Quick ratio…

A: Profitability ratios are those ratios which helps in measuring and determining the profitability of…

Q: Which of the following ratios is always the lowest? a. The net profit margin b. The gross profit…

A: Profit margin is a financial metric that measures profitability of a business or a specific product…

Q: Define each of the following terms:g. Market Value Added; Economic Value Added

A: We can define the terms as follows:

Q: What is Internal Rate of Return - Variable Cash Flows with Reversion?  Please provide examples.

A: The internal rate of return is the one of the discounted techniques of capital budgeting which is…

Q: Which method use net income and which use cashflow.

A: Statement of cash flows:   It is one of the financial statement that shows the cash and cash…

Q: Profitability ratios Profit margin Return on assets Return on equity Market value ratios -…

A: Current Ratio / Quick Ratio / Operating Cash Flow Ratio Current Ratio - Current Asset / Current…

Q: Differentiate between net cash flow and accounting profit

A: There are 2 elective standards accessible for discovering future monetary advantages of a…

Q: The following are investment criteria: net present value, payback, profitability index, average…

A: The question is based on the concept of capital budgeting techniques , to ascertain the true worth…

Q: What is the alternative way of preparing the Cash Flow Statement?

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: Define each of the following terms:f. Accounting profit; net cash flow; NOPAT; free cash flow;…

A: Accounting profit is the net profit of a firm after deducting a company’s revenue from its expenses.…

Q: List and compare all advantages and disadvantages of Payback Period Rule, Average Accounting Return,…

A: Payback rule: The Payback period is the length of time required to recover the initial cost of a…

Q: Define cash-basis net income.

A: Cash basis of accounting: Cash basis of accounting refers to the recognition of financial…

Q: What is the impact of working capital on the cash flow statement?

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: What is the relationship between profitability and efficiency, liquidity, investment, and efficiency…

A: (1) Financial Ratios will express financial Quantity concerning another financial ratio. (2) These…

Q: How is the impact of uncertainty reflected in a discounted cash flow (DCF) analysis?a) Debt/equity…

A: The objective of the question is to identify how uncertainty is reflected in a discounted cash flow…

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: The return on assets ratio is a: OLiquidity ratio. O Solvency ratio. O Profitability ratio.

A: · Ratio analysis used to identify the business performance of the company.· It is used to measure…

Q: Describe the annual cash flow analysis, which presents measures of investment worth based on yield?

A: The question is based on the concept of cash flow and its analysis in terms of discounted value of…

Q: About cash flows versus net income. Which should we use in present value calculations and why?

A: Net present value is the value of an investment in today’s worth. It is a capital budgeting…