How can we determine the project cash flows over the project life?

Q: Identify the cash flow series associated with production or service over thelife of the asset?

A: Definition: Cash inflows: The amount of cash received by a company from the operating, investing,…

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: how many of the following investment criteria always use all of a projects cash flows in their…

A: Project cash flows generally refers to cash amount which is generated from investment which ignores…

Q: How is the payback period used in capital budgeting? Multiple Choice As a measure of a project's…

A: The payback period is the amount of time it takes for you to recover the cost of your investment. In…

Q: Describe the project cash-flow analysis?

A: The question is based on the concept of  cash flow analysis of  a project.

Q: When considering a project’s Operating Cash Flows, where are Financing        Costs included?

A: Financing cost is the cost of the debt taken by the company which would be used for financing the…

Q: Please provide examples of the cash inflows and outflows that may be considered when considering a…

A: The capital project is the project that helps in the improvement of various capital assets. It is…

Q: The Modified Internal Rate of Return (MIRR) is based on : Reinvestment rate, financing rate, and the…

A: MIRR is a discounting rate that compares the present value of future cash inflows to zero year…

Q: How many of the following investment criteria always use all of a project's cash flows in their…

A: Capital budgeting techniques are used to determine whether the projects undertaken are profitable to…

Q: Explain the Calculation of Net Income Attributable to New Project?

A: Answer: Companies regularly estimate the income after meeting all the expenses due to the new…

Q: The net present value of a capital budgeting project is ________.     The difference between the…

A: The present value factor is considered as one of the important techniques which are used by the…

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: The internal rate of return method assumes that a project's cash flows are reinvested at the:

A: The internal rate of return is a financial analysis tool that is used to estimate the profitability…

Q: Is it always necessary to adjust projects’ cash flows when different projects haveunequal lives?…

A: EAA or Equivalent annual annuity is a methodology utilized in capital budgeting to pick between…

Q: Compute the net cash flows for this project over its useful life so What is the profitability index…

A: Sales represent the amount of revenue which is generated from the rendering of goods or services by…

Q: What is normal cash flow project?

A: Cash flow refers to the amount of cash that the company receives from investing into a project.…

Q: Explain why net operating working capital is included in a capital budgeting analysis andhow it is…

A: The net operating working capital is included in a capital budgeting analysis andrecovered at the…

Q: What would be a business example that shows how depreciation and accelerated depreciation can affect…

A: Depreciation- is a method used by a business or company to write off an asset's value over it's…

Q: Depending on the cash flow assumption, should the project must use continuous cash flow? why?

A: In continuous discounting and continuous cash flows, the assumption is that the cash stream happens…

Q: Which of the following projects have conventional cash-flow streams? Select all that are…

A: Solution:- Conventional cash flow stream is that cash flow stream in which the sign of cash flows…

Q: Why do we need to predict how certain costs will behave in response to change activity in project…

A: Cash flow analysis is the way by which financial health of the company can be checked. In this…

Q: Explain the cash conversion cycle, its funding requirements, and the key strategies for managing it.

A: The cash conversion cycle will be reflective of a liquidity metric which will be helpful in…

Q: Explain the Incremental Cash Flows from Undertaking a Project?

A: Incremental cash flows  It is an additional amount of net cash flows produced by the project…

Q: What will the cash flows for this project be?

A: In year 0, the cash flow would consist mainly of investment made in the truck and net working…

Q: Illustrate the conventional payback period, annual project cash flow over the life of project, and…

A: The illustration is shown below:

Q: Mathematically, how can we determine the rate of return for a project's cash flow?

A: IRRIt is the capital budgeting technique of discounted cash flow which gives a rate of return being…

Q: How can we predict the future cash flows in a project?

A: Cash flows refer to the amount of net cash and cash equivalents that flow in and out of the…

Q: In a single sentence, explain how you can determine which cash flows should be included in the…

A: Single sentence: Cash flows that will only occur if the project is accepted should be included in…

Q: What is the estimated Internal Rate of Return (IRR) of the project? Should the project be accepted…

A: Calculate the initial investment and operating cash flow for the given investment: Excel formula:

Q: How can we measure the true rate of any internal portion of an investment project?

A: The question is based on the concept of evaluation of different components of a project, it can be…

Q: Calculate the benefit-to-cost ratio of a project that invol cash flow:

A: Calculation of Present Value Year Cashflows 1 1.09 1 110 0.917431 100.9174 2 110 0.84168…

Q: How can we measure the true rate of return of any internal portion of an investment project?

A: True rate of return means real rate of return on investment. It is the actual return earned on an…

Q: In the estimation of incremental cash flows for a new project, several costs and issues are…

A: ICF stands for Incremental cash flow is defined as the cash flow which is attained through company…

Q: State a method that translates a project's cash flows into an equivalent net present value?

A: Both investment and finance decisions are made with the primary purpose of increasing shareholder…

Q: Set up the cash flows for this project. Determine the discount rate for this project. Calculate the…

A: Net Present Value: It is a measure of profitability in capital budgeting and shows the amount of…

Q: Explain project net cash flows

A: A project generally has cash outflow and then a series of cash inflows. The excess of cash inflows…

Q: Explain project cash flows

A: Project cash flow is a dynamic process, in which the money moves into and out of the business. Its…

Q: How can we develop the cash flow series over the project life based on the assumption of most likely…

A: Below is the cash flow developed on the base of assumption:

Q: Calculate operating cash flows. Calculate the payback period for each project to Calculate the net…

A: Operating cash flow :— It is the amount of annual cash inflow of the project.    Payback period :—…

Q: How can we determine the required capital investment for an investment project?

A: Estimation of the capital investment is required because this is the foremost decision while…

Q: Cash flows from the project are

A: Information Provided: Revenue = $120,000 Cost = 60% of Revenue Tax = 21% Working capital = 10,000

Q: Why should companies use a project’s cash flows rather thanaccounting income when determining a…

A: Net Present Value is the difference between the current value of cash inflow and cash outflow for a…

Q: the cash flows for this project be?

A: Cash flow shows the amount of cash inflow and outflow from the company. The cash flow statement…

Q: What is the project's cash flow?

A: Statement of cash flow: It refers to a financial statement that shows all the cash payments and…

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.