In the evaluation of cash flows in a capital budgeting decision , which of the following must be considered? I. The size of the cash flow II. The timing of the cash flow III. The risk of the cash flow a. I only b. I and II only c. II only d. II and III only e. I, II and III

Q: List out the evaluation techniques used in capital budgeting. According to you which technique is…

A: Capital Budgeting:- Capital budgeting is a process of examine various investment opportunities for a…

Q: In proper capital budgeting analysis we evaluate incremental __________ cash flows. Select one: a.…

A: Capital budgeting analysis helps to make financial decisions. A project that is profitable can be…

Q: How to analyze capital budgeting decisions? Which measures are important and why?

A: Capital Budgeting process involve analyzing the cash in flow and outflow of a project, to determine…

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: What is the meaning of the time value of money? And why the financial manager uses it to decide on…

A: According to the concept of time value of money (TVM), the value of money available at the present…

Q: Why does capital budgeting rely on the analysis of cash flows rather than on net income

A: Capital budgeting : Capital project is a major expenditure that’s required to purchase a machinery…

Q: Which of the following methods of methods of capital budgeting is base cashflows: Payback NPV…

A: As per Bartleby guidelines, If multiple questions are posted, only the first 1 question will be…

Q: The importance of cash flow management when evaluating proposals for capital expenditure?

A: All investments in capital assets are expected to earn a return, which is evaluated by comparing the…

Q: Which of the following are major cash flow components in capital budgeting?   Question 8 options:…

A: Capital budgeting involves cash inflows and huge amounts of initial investment.Capital budget…

Q: Identify two simplifying assumptions associated with discounted cash flow methods of making capital…

A: Capital budgeting: Capital budgeting is a process by which the management can plan and evaluate the…

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: What is the second step of capital budgeting? a. Gathering the money for the investment b.…

A:

Q: We discussed the use of sensitivity analysis and simulation analysis in the context of estimating…

A: Cash flow can be inwards or outwards. Cash flow includes the fallow of cash only, it does not…

Q: Explain what is meant by the time value of money, and discuss its relevance to the capital budgeting…

A: Value of money means its purchasing power. It can also be explained as the quantity of goods that…

Q: How are cashflows important to capital budgeting?

A: Capital Budgeting process is a way for business to decide the long term economic and financial…

Q: What is the Decision-making Criteria in Capital Budgeting?

A: Hi, there, Thanks for posting the question. As per our Q&A honor code, we must answer the first…

Q: Operating cash flows rather than accounting income are listed in Table 12.1. Why do we focus on cash…

A: Answer: The main reason why we are focusing on cash flows is only because cash can be invested or…

Q: Define the most important capital budgeting techniques. Name at least two capital budgeting…

A: It refers to the long term investment decisions that has been taken by the top management of a…

Q: Why are discounted cash flow methods of making capital budgeting decisions superior to allother…

A: Discounted cash flow: it is a valuation method. This method helps in determining the Value of a…

Q: Explain what the techniques of Strategic Capital Budgeting are

A: Strategic capital Budgeting plays a significant role in evaluating long term projects that…

Q: Of the capital budgeting techniques discussed, which works equally well with normal and non-normal…

A: The correct answer is “Net present value”.

Q: Describe Capital budgeting techniques with their respective strength and weakness for IRR , NPV , PI…

A: Capital budgeting is the process used by the companies to determine whether to invest in a long-term…

Q: Should financing costs be included as an incremental cash flow in capital budgeting analysis?…

A: Financing ost will be reflective of all such cost which are incurred due to financing of a…

Q: Which of the following is the most reliable method for making capital budgeting decisions? a. ARR…

A:

Q: What are the critical steps involved in the capital budgeting process?

A: Capital budgeting process : Capital budgeting is the process of choosing ideal investment project…

Q: What is capital expenditure?

A: Expenditure means the amount spent on anything which is done for the purpose of business . It can be…

Q: Identify “relevant” cash flows that should and should not be included in a capital budgeting…

A: Before investing in new projects or assets, profitability of the project is evaluated by using…

Q: How is the estimation of relevant cash flows one of the most important parts of this…

A: Capital budgeting is the process a company follows to decide whether to purchase a fixed asset or…

Q: What two pieces of information does the payback method providethat are absent from the other capital…

A: The question is based on the concept of calculation of payback period as a capital budgeting…

Q: Should interest expenses and dividend be included as an incremental cash flow in capital budgeting…

A: Incremental cash flow Incremental cash flow is the extra cash flow that a company generates by…

Q: Capital budgeting and cost of capital plays an important role in taking long term financial…

A: NPV computes the existing value of future benefits by discounting future worth with a stated…

Q: 1-What are the relevant cash inflows and outflows for capital budgeting decisions?

A: Hi student Since there are multiple questions, we will answer only first question. If you want…

Q: Managers use capital budgeting techniques to make which of the following two types of capital…

A: As per the guidelines, only one question is allowed to be solved so I am answering the first…

Q: 1- What are the payback and discounted payback methods? What are their main weaknesses? 2- What are…

A: As per out policy, I am answering first three sub-parts. Please repost the question by asking…

Q: In capital budgeting, sensitivity analysis is used to: O determine whether an investment is…

A: Solution: In capital budgeting, sensitivity analysis is used to "see how a decision would be…

Q: NPV

A: Net present value (NPV) internet gift worth (NPV) is that the distinction between the total of…

Q: Discuss how a project's risk can be incorporated into capital budgeting analysis.

A: Answer: Capital budgeting is a process to determine potential investment after evaluating the…

Q: What factors should you keep in our mind as a financial manager when selecting methods of capital…

A: Capital budgeting is the method through which financial managers are able to make decisions related…

Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.