The net present value of an investment represents the difference between the: present value of cash inflows and present value of cash outflows.   cost and its net profit.   cash flows and future value of profits.   cost and net income.

Q: How is payback calculated with equal net cash inflows?

A: A payback period is the amount of time needed to earn back the cost of an investment. The length of…

Q: Distinguish between Cash flow versus Net Income?

A:

Q: The present value of cash flows in Investment A is lower than the present value of cash flows in…

A: Discount rate is very important FACTOR in calculating the present value of cash flow. Particularly…

Q: _____isthe difference between the gross present value of the benefits of that action and the amount…

A: The difference between the present value of benefits and amount of investment is the key evaluation…

Q: Contrast the direct and indirect methods of calculating net cash flow from operating activities.

A: A Cash flow statement is a financial statement that provides the summarised information regarding…

Q: How is IRR calculated with equal net cash inflows?

A:

Q: How do you evaluate an asset whose value is predicated on future cash flows?

A: Assets are the resources that are generally used for the purpose of revenue generation by the…

Q: What is the maturity period required for an investment to qualify under the definitions of a cash…

A: Cash and cash equivalents correspond to just the line item on the balance sheet that lists the value…

Q: Discounting an investment’s cash flows using the internal rate of return will result in which of the…

A: Introduction: The internal rate of return (IRR) is a research and consulting metric used to assess…

Q: Cash surplus and economic assumptions are components of a financial planning model. True or False

A: Future is uncertain and it contains various risk factors. Financial planning (FP) model is used to…

Q: Describe the strengths and weeknesses of the following:: Cash payback period Adverage accounting…

A: As you have given multiple questions, first 3 will be answered. Please re-post the question for…

Q: What three aspects of cash flows affect the valueof any investment?

A: The cash generated over and above required by business operations and capital expenditure is called…

Q: How is IRR calculated with unequal net cash inflows?

A: Definition:   Internal rate of return method (IRR): Internal rate of return method is one of the…

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 Calculation of Net Cash Flow?  Please provide example.

A: Net Cash Flow: It is the total amount of money created or lost over a particular timeframe, normally…

Q: We can separate cash return on assets into: a. Cash flow to sales and return on assets. b. Profit…

A: Cash return on assets is: = Cash flows / Average Assets

Q: The net present value of an investment represents the difference between the:

A: The Answer :

Q: is the difference between the gross present value of the benefits of that action and the amount of…

A: Net present value is the difference between the present value of future cash inflows and cash…

Q: Describe the annual cash flow analysis, which presents measures of investment worth based on yield?

A: The question is based on the concept of cash flow and its analysis in terms of discounted value of…

Q: When using the NPV method for a particular investment decision, if the present value of all cash…

A: When NPV method is used the investment is measured on three scenarios Positive NPV Where the…

Q: How do you evaluate an asset whose value is dependent on future cash flow expectations

A: The Answer :

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: Distinguish between the cash flow and Net Income?

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: On what does the interest paid on a cash investment depend?

A: Cash investment An investment (short-term) under which one makes a deposit the cash and also…

Q: What is the significance of the FCF (Free Cash Flow) in the area of valuiation?

A: The cash flow to the business or equity after all debt and other obligations have been paid off is…

Q: Define the term the cumulative cash flow?

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: Describe the process of computing the equivalent cash value?

A: Equivalent cash value is the value that has equal worth as much as cash has. Generally, bank…

Q: Describe the Investment-Credit Decision—A Cash Flow Perspective.

A: Answer: Every lender and borrower shall have their own conditions based on their needs and wishes.…

Q: In this method, the company compares the amount spent on the investment with the discounted expected…

A: a. Payback is the period in which the investment can break-even. b. NRV is the difference of…

Q: What is the difference between net cash provided by operating activities and free cash flow?

A:

Q: Is the cash conversion cycle useful and important in financial analysis? Explain

A: The working capital is a short term fund, which is used to meet day to day operational costs of a…

Q: Which of the following statements best describes the difference between the IRR method and the MIRR…

A: Note: As per the policy, we are supposed to solve one question at a time. Kindly repost the further…

Q: What are the benefits of Relevant Cash-Flow Information?

A:

Q: What is the difference between a cash basis and an accrual basis measure of performance?

A: Cash Basis :- It is an Accounting Method where Revenue and Expense are identify at the time of…

Q: how do I determine how cash flow is generated?

A: What is a cash flow? Cash flow refers to the amount of cash or cash-equivalent a business receives…

Q: s there any significance that can be attributed to whether net cash flows are generated from…

A: These are shown separately in the cash flow statement of one business.

Q: What is the difference between the net aggregate cash inflow and the net aggregate incomes?

A: The net cash flow of an association speaks to the entirety over some undefined time frame of the…

Q: Which of the following are Cash Outflows from Investing?

A: The cash flow statement shows the cash inflow and cash outflow from the operating activities,…

Q: Calculate the present value and future value of an uneven cash flow stream.

A: A stream of cash flow is uneven  when all the amounts in the series of cash flows are unequal .i.e.,…

Q: What is the operating cash flow? The capital spending? The change is net working capital? The cash…

A: Capital spending is termed as the amount spent by the firm in the year to purchase or maintain the…

Q: Value in use is a) © Discount rate b) © Present value of future cash if flows c) © Uncertainty of…

A: The monetary value of an asset or liability is referred to as its value. The most accurate…

Q: Distinguish between operating cash flow and net income.

A:

Q: What is meant by an incremental cash flow? What do you need to ask yourself when deciding whether a…

A: When a firm takes on a new project, there is new cash flow associated with this new project. The…

Q: Illustrate the process of computing the equivalent present worth when all cash flows are given in…

A: The process to compute the equivalent present worth are: Identify the interest rate Identify the…

Q: How is payback calculated with unequal net cash inflows?

A:

Q: Why, in most cases, accrual-basis net income provides a better measure of perfomance than net…

A: Under the accrual method of accounting, income is recorded on the income statement when it is…

Q: Describe the cash flow approach?

A: Cash flow referred as the net value of cash and cash equivalent transferred as in and out of…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.