Project 1 Years 1 2 3 Cash Flow -5000 500 2000 3000 1000 Cumulative Cash Flow -5000 -4500 -2500 500 1500 WACC 15% Years 1 2 3 Cash Flow -5000 500 2000 3000 1000 Discounted Cash Flow -5000 434.78 1739.13 2608.70 869.57 Cumulative Discounted Cash Flow -5000 -4565.22 -2826.09 -217.39 652.17 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).

Q: Explain the alternatives in accounting for prepaids.

A: Prepaid expenses: Prepaid expenses refer to the payments which are made in advance and the amount…

Q: Explain receivables conversion period

A: It is the time interval connecting the sale of the last item using a credit card and cash receipts…

Q: What are the two types of discounts?

A:

Q: Explain how the obligation for postretirement benefits is measured and how the obligation changes.

A: The answer for this question is given generally as each organisations can following their own…

Q: How to Use Compound Interest Factors for Annuities

A: Compound interest factor for annuities is used to compute the present and future value of annuities,…

Q: Define Interest receivable.

A: Introduction: Interest Receivable is an amount which has been earned by the person but the same has…

Q: What are warranty payments? Please explain.

A: A Warranty is a basically a handwritten promise made by the seller to the buyer on paper that if the…

Q: Explain how the present value of an ordinary annuityinterest table is converted to the present value…

A:

Q: Which of the following creates variable consideration? Discounts Allowances Rebates All of these…

A: Variable consideration includes the following: Rebate Discount Credit Allowances Penalties Sales…

Q: Identify which one of the following is also called as Fixed deposit account? a. Demand deposit b.…

A: Fixed deposit accounts are fixed deposit accounts have fixed MATURITY period and can be withdrawn…

Q: Explain payback period

A: Answer: Payback period is nothing but the time a company gets back the money that is originally…

Q: Explain using practical example how a discount on a debenture is treated ?

A: Let us take an example Divya Ltd. issues Rs. 1, 00,000 debentures on Jan. 1, 2021, at 10 per cent…

Q: What is the difference between spot rates andforward rates? When is the forward rate at a premium to…

A: Spot rates are the rates that prevail in the cash market or the rates that are applicable today.…

Q: What are the most frequent uses of contingent payments?

A: A contingent payment is a mechanism used in M&A whereby, in addition to an upfront payment,…

Q: What do we mean by a uniform series payment?

A: Under uniform series of payment, payment of same amount is made or received at a regular time…

Q: Describe the two forms that the calculation of the payback period can take?

A: The payback period alludes to what extent it takes for a speculator to hit breakeven to recoup the…

Q: Define increase or decrease of credits.

A: Definition:   Account: Account is the basic record that reports all changes in the value of…

Q: why was the discount rate included in the table?

A: Discount rate is the expected rate of return for the project value which is used to convert the…

Q: Define the term prepaid insurance.

A: Prepaid expenses: Advance payment for future expenses is called as prepaid expenses. These prepaid…

Q: Describe the difference between a trade discount and a cash discount.

A: Discounts are essential in commercial transactions because they affect buyers' decisions and help…

Q: Explain the difference between a trade discount and a cash discount.

A: Discount is the deduction from the cost of product or service that a seller offers to the buyer…

Q: Write an equation for determining the value of the series of end-of-period payments?

A: Formula:

Q: Explain the concepts of Bill Discounting

A: When a business engages in bill discounting, a financier (a bank or another financial institution)…

Q: Differentiate between a stated rate of interest and effective rate of interest.

A: Answer: Stated interest rate: This is the interest rate quoted or the average rate offered by the…

Q: Difference between annuity and lump sum payment.

A: Time value of money: Time value of money refers to the concept that the value of money available at…

Q: Discuss the present value of an annuity due with an example

A: Present value of an annuity An Annuity is a stream of regular periodic payments made or received for…

Q: If any discount is offered for early payment of invoice will be called as a. Cash discount b. Trade…

A: An early payment discount – also known as a prompt payment discount or early settlement discount /…

Q: Describe the process of using the risk-adjusted discount rateto calculate the net present value?

A: Net present value (NPV) is the excess of present value of cash inflows over the present value of…

Q: Transfer payments include i. social security benefits ii. medicare and medicaid benefits iii.…

A: Transfer payment is the payment by the government for which nothing has not been received in return.…

Q: Explain the difference between an ordinary annuity and an annuity due.

A:

Q: Write and submit the Proof of Ordinary Annuity

A: Ordinary Annuity: The sum of ordinary annuity is:F=A[(1+i)n−1]iF= Sum…

Q: How can we determine the amount of a periodic payment?

A: The amount of periodic payment is determined using the following formula: