O discounting factor. O number of periods. O compounding factor. O interest rate. cash flow is computed by multiplying the future cash flow value with the:

Q: In performing a Cash Flow Analysis, we can deduct: a. Mortgage Loan Interest b. Amortized Loan…

A: Cash flow analysis is the examination of inflows and outflows of cash of a business entity.

Q: If cashflows are discounted @   the net present value is     zero.   O a. RATE OF BORROWING…

A: Capital budgeting is the process by which a corporation examines potential large projects or…

Q: Determine the ERR (External rate of return) of the cash flows if external rate (e) is given as %10.

A: External rate of return is the modified form of internal rate of return in which it is assumed that…

Q: When calculating the present worth of a uniform series using the relationship P = A(P|A, i%,n), the…

A: P equals to A times the factor of P over A and this factor known as the Uniform Series of Present…

Q: The present value of a lump sum future amount: O A. increases as the interest rate decreases. O B.…

A: The present value is defined as the discounted amount of the expected future value. The current…

Q: To calculate a terminal value, one divides the next period's cash flow by the spread between the and…

A: You are absolutely right. The formula you described is one way to calculate the terminal value of a…

Q: Define effective annual rate (EAR) with examples. Differentiate between annuity cash flows and mixed…

A: Nominal interest rate (annual interest rate) is the annual rate without effect of compounding.

Q: How do youcalculate present and future value cash flows from various time periods using single and…

A: Capital budgeting tools are used to make a decision on how much capital should be invested in a…

Q: If you disounted a set of positive real cash flows with a nominal discount rate and inflation were…

A: Justification:Suppose the positive cash flows are discounted with the inflation rate, which is…

Q: Net cash flow is equal to

A: Net cash flow alludes to the variation between cash inflows and outflows over a specific period of…

Q: Define the term reinvestment rate and describe how it differs for any cash flow series between (1) a…

A: Answer: Rate of return is nothing but the interest rate paid on the outstanding balance of money…

Q: The internal rate of return (IRR) is The same thing as the cost of capital. The discount rate that…

A: Capital budgeting is referred as the process of decision making which is used by companies to…

Q: are three categories of cash flows: single cash flows, also referred to as “lump sums,” a stream of…

A: Annuities are very important in daily life and also in the retirement also because they provide…

Q: 3. Future value The principal of the time value of money is probably the single most important…

A: Time value of money: This concept tells us that a sum of money received today is  worth more than a…

Q: Consider two assets with the following cash flow streams:   Asset A generates $4 at t=1, $3 at…

A: Given: r = 0.2 or 20% PV of asset B = 12 Cash flow for Asset B: t1 = $2 t2 = $X t3 = $10

Q: Which of the following is the correct definition for present value (PV)?

A: Present value is an important concept in finance which is based on the concept of time value of…

Q: 20. This refers to the difference between the present value of cash inflows and the net present…

A: Net present value is used when capital budgeting decisions are to be made, with its help the…

Q: The measurement basis most often used to report a long-term paya a commitment to pay money at a…

A: Accounting Principals -Accounting standards, such as GAAP and IFRS, provide a set of rules and…

Q: The value of a sum after investing over one or more periods is called a) Discount Value b) None…

A: Using Time value of money concepts

Q: Briefly introduce about about the concept of time value of money. Also differentiate  present value…

A: Investors have different options to make investments, and the motive behind investments is to…

Q: In a cash flow series regarding the gradient: Select one: O a. Uniform gradient signifies that an…

A: When cash flows of a series changes with a constant amount, it is knows as gradient series.

Q: A financial analyst is treating a cash flow stream as a perpetuity.  The present value of the…

A: Present Value of Perpetuity: It represents the present worth of the perpetual cash flow stream. It…

Q: Terminal value refers to the sum of all the net cash flows from an investment from the beginning to…

A: Given Statement, Terminal value refers to the sum of all the net cash flows from an investment from…

Q: What is Internal Rate of Return - Monthly Fixed Cash Flows with Reversions?  Please provide…

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

Q: The discount rate is the combination of what two types of discounting?   a. exponential and linear…

A: Discount rates are used for discounting the future cash flows. It helps in determining the time…

Q: True/false   Under IFRS, the discount rate should reflect risks for which future cash flow…

A: False  Refer step 2 for explanation

Q: oose the correct option- "This is the rate at which present value of cash inflows are equal to the…

A: Net present value or NPV is excess of present value of cash inflows over present value of cash…

Q: There are three categories of cash flows: single cash flows, also referred to as “lump sums,” a…

A: An annuity is a financial product that distributes a fixed stream of payments to a person, often…

Q: In future value or present value problems, unless stated otherwise, cash flows are assumed to be…

A: There are two types of cash flows 1. Ordinary annuity 2. Annuity due.…

Q: Find the internal rates of return on a cash flow with deposit amounts of Ao = 40, A₁ = 120, A₂ 290,…

A: Net Cash Inflow at (t = 0) (N_1) = A_0  - B_0 = 40 - 240 = -200 Net Cash Inflow at (t = 1) (N_2) =…

Q: A series of equal cash flows at fixed intervals is termed a(n)   a. price-level index   b. present…

A: A price index is a normalized  weighted average of price relatives for a given class of goods or…

Q: Describe the essential differences between the following cash flow streams: Annuity versus…

A: The difference in the cash flows will arise due to the change in the time period which is associated…

Q: In the net present method future, cash flows are discounted to their present value a)TRUE b) FALSE

A: Under net present value method all future cash flows are discounted to their present value .

Q: Please answer the following questions 1. _________________ is the discounted net future cash…

A: Profitability Index= PV of cash inflows/Initial cash outlay where, PV= Present Value Balanced…

Q: Which of the following statements are correct? The internal rate of return (IRR) generated by a…

A: IRR (Internal Rate of Return)IRR is the discount rate at which the net present value (NPV) of cash…

Q: Determining the future value of one or more present day cash flows is known as​ ________.   A.…

A: Future value is known as value in the future of present cash flows

Q: Define DCF (discounted cash flow) analysis

A: Discounting cashflow

Q: Time value of money calculations can be solved using a mathematical equation, a financial…

A: To calculate the future value of an annuity due, you can use the following formula:FV = PMT x {[(1 +…

Q: As the discount rate increases, the present value of a given future cash flow also increases. Do you…

A: No, I don’t agree with the statement. If the discount rate raises then the present value (PV) of…

Q: Question 3.Match the following terms with the appropriate definition.Future ValueTime value of…

A: Future value is the amoutn received at the end of future period along with interest.Time value of…

Q: ear Flow 0 -5000 1 2000 2 4000 3 -1500 4 3000 5 4000 6 -6000 7 9000

A: External rate of return is the modified form of internal rate of return in which it is assumed that…

Q: In a cash flow series regarding the gradient: Select one: a. Uniform gradient signifies that an…

A: A series of cash flows may increase or decrease by an amount each period. Such a series of cash…

Q: An example of an operating budget schedule is the: cash budget budgeted balance sheet O capital…

A: examples of operating budgets - Purchase budget Sales budget cost of goods sold budget etc.   time…