Discuss the following statement. A manager believes that changes in NWC can be ignored from your free cash flow calculation if it will be recovered at the end of the project.

Q: How can we prepare a project's cash flow statement?

A: Cash flow statement of a project means summarised view of all cash inflows and cash outflows of the…

Q: Breakeven cash inflow refers to ________.   the minimum level of cash inflow necessary for a…

A: Net present value is one of the discounted techniques of capital budgeting which is used to measure…

Q: Assume that both Projects A and B have normal cash flows, with one outflow followed by a series of…

A: IRR(Internal ROR) is the rate at which NPV(Net Present Value) of a project is zero. At IRR, PV of…

Q: Your company is considering two different methods of producing its product: purchase production…

A: Generally, maximizing firm value is a key objective for a company, as it reflects the overall wealth…

Q: For the purpose of performing capital budgeting analysis, we need to look at incremental cash flows…

A: In capital budgeting analysis, businesses evaluate potential investment opportunities to determine…

Q: Is it worth the effort to estimate daily project cash flows?  Would doing so be helpful in the…

A: Cashflows are usually estimating yearly and then discounted at an appropriate discount rate

Q: Explain how a financial manager may be able to use the cash flow breakeven to plan their financing…

A: The phrase cash flow refers to the net amount of cash and cash equivalents that are transferred in…

Q: Disadvantage of the payback method include: Answer choices are below: A) does not consider cash…

A: The correct answer is D) all of the above. The payback method indeed has several disadvantages. It…

Q: 4. Modified internal rate of return (MIRR) The IRR evaluation method assumes that cash flows from…

A: The objective of the question is to calculate the Modified Internal Rate of Return (MIRR) for a…

Q: The two cardinal rules that financial analysts should follow to avoid errors are: (1) in the NPV…

A: The net present value rule (NPV) states that an investment should be authorised if its NPV is…

Q: The use of natural resources in an economic activity involves setting up a project for harvesting…

A: Capital budgeting is a process of allocating the company's resources to profitable projects, it uses…

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: As a financial manager and evaluating capital investments, one of the most difficult portions of the…

A: The answer is given below

Q: It is the difference between the present value of cash inflows and the present value of cash…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: How can the money released from a project be reinvested to yield a rate of return equal to that…

A: A rate of return can provide brokers and investors key data for future trades or investments. The…

Q: a. Explain how discounted cash flow (DCF) works and how it relates to simple summation of future…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: Pls help with below homework.

A: Payback period refers to the amount of time it takes for a business or firm to recover the initial…

Q: How can we easily automate the process of computing the net present worthof any project cash flow…

A: Net present value (NPV) is the contrast between the present value of money inflows over some…

Q: chance that a cash flow will turn out to be worse than the estimate. b. the chance that a…

A: Step 1 The planning process used to assess whether an entity's long-term investment is appropriate…

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: Which of the following statements is CORRECT? Assume that the project being considered has normal…

A: Internal rate of return (IRR) is the discount rate of a project which makes its NPV=0. It is a…

Q: A key difference between the IRR and the MIRR is a. cash flows are assume be reinvested at the risk…

A: IRR is rate of return at which present value of cash flow is equal to initial investment in the…

Q: 1. Concepts used in cash flow estimation and risk analysis You can come across different situations…

A: Externalities can also play a significant role from a capital budgeting perspective. Capital…

Q: The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate…

A: Modified Internal Rate of Return (MIRR) is a metric used to measure the potential profitability of…

Q: True or False  A project will have multiple internal rates of return if its future net cash flows…

A: Internal rate of return (IRR) is the annual rate of return which is anticipated from the cash flows.…

Q: All of the followings are True when the net present value method is used to choose between two…

A: Net present value is the excess of present value of cash flows over cash outflows or initial…

Q: 4. Modified internal rate of return (MIRR) The IRR evaluation method assumes that cash flows from…

A: MIRR refers to modified internal rate of return. There are some inherent shortcomings of IRR and…

Q: Which of the following statements is False regarding the payback period method: DA Use as a tool in…

A: Statement -D is false.As payback period method is Non- discounting cash flow criteria…

Q: Discuss what impact will an inaccurate progress estimate have on cash flow? . Discuss the reasons…

A: An inaccurate progress estimate can have a significant impact on cash flow for a project. Cash flow…

Q: What should a manager do with a project that has two internal rates of return (IRRs)? O a. Do the…

A: IRR, or Internal Rate of Return, is a financial metric used to determine the profitability of an…

Q: Which of the following statements is false The net present value method considers the time value of…

A: This is based on the principles of capital budgeting tools.   We use different capital budgeting…

Q: The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate…

A: MIRR refers to modified internal rate of return. MIRR, as a capital budgeting tool, seeks to remove…

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: A project's present value can be decreased by, I. decreasing the required discount rate (required…

A: There are various reasons for decreasing the present value of the project some of them are as…

Q: Which of the following is a disadvantage of the IRR project evaluation method? Question 5Select…

A: IRR is also known as Internal Rate of Return.. It is a capital budgeting technique which helps in…

Q: Can replacement chain analysis be used if project cash flows are different each time the project is…

A: Several statements have been given regarding the suitability of replacement chain analysis,  if…

Q: The best model to analyze the project financially is cash flow. Select one: O True O False

A: To evaluate a project for its acceptability, we need to analyze its profit generating ability.…

Q: In computing the present value of an investment in equipment, the present value of the residual…

A: Net Present value = Present value of future cash flows + Present value of terminal cash flow -…

Q: Which of the following statements is CORRECT? Assume that the project being considered has normal…

A: IRR stands for Internal Rate of Return, which is a financial metric used to evaluate the…

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: When the present value of the cash inflows exceeds the initial cost of a project, then the project…

A: If present value of cash inflows exceeds the initial cost of a project, then NPV of the project will…

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.