we can still calculate the IRR on incremental cash flows. True or false? Explain with example?

Q: The longer the payable turn-over, the higher the cash conversion cycle.

A: Cash Conversion Cycle Formula: Days Inventory Outstanding+ Days Sales outstanding- Days Payable…

Q: which of the following statement is true>? 1. return on equity is the ratio of total assets to…

A: Capital budgeting is a way to evaluate profitability of new projects or investment by using various…

Q: A firm is considering investing in a project that is expected to generate total free cash flows of…

A: The discounted cash flow valuation method is a frequently employed method wherein all the future…

Q: How can we convert any cash flow elements in constant dollars into actual dollars?

A: The cash flow elements are the constant value that can be converted into actual value by adjusted…

Q: Describe the project cash-flow analysis?

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

Q: We discussed two valuation models: discounted cash flow (DCF) and residual operating income (ROPI).…

A: Discounted cash flow analysis helps investors and business owners make major decisions relating to…

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: What is nonnormal cash flow projects?

A: Introduction:   Cash flow is the cash or cash equivalent transferred from in and out of business.

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: 15. M purchased a small lot in a subdivision, paying P200.000 down and promising to pay P15.000…

A: Quarterly Payment "PMT" is of P15,000 Down Payment is P200,000 Time period is 10 years Total number…

Q: nt is more​ liquid, the return you receive will

A: Liquid investments are those investments that can be easily sold for cash.

Q: Which of the following situation is better for the company? O a. All of these O b. Cash conversion…

A: The cash conversion cycle (CCC) is the days of inventory plus the days of receivable less the days…

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: 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: 1. 1. Builds a cash value variable life whole life COBRA Both A and B

A: Cash value is a form of permanent life insurance which lasts for the lifetime of the holder and can…

Q: Suppose an investment has conventional cash flows with positive NPv. How would it impact your…

A: NPV is the net present value of a project. When the net present value of a project is positive in…

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: 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: How do we determine the PW for an infinite (or ~ almost infinite) uniform series of cash nows or a…

A: The PW for cash flow infinite uniform series is determined by the formula:

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: 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: 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: Describe the process to find the mean and variance of the PW for the incremental cash flows?

A: Identify the Rate, project life. Then Incremental cash flows should be computed.

Q: A project can have as many different internal rates of return as it has: O changes in the sign of…

A: The internal rate of return (IRR) is used to measure the profitability of investments. It is the…

Q: The most liquid money aggregate is? Select one alternative: M0 M1 M2

A: Solution Step (1) M0, M1 M2 In the united states, the money supply is classified by various…

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: Why is the free cash flow valuation model so widely used?

A: With the free cash flow of the firm, administrators will focus on potential businesses that increase…

Q: Consider IRR on Incremental Investment when Initial IRR Flows are equal?

A: Answer: IRR is a measure in capital budgeting used to measure the value of the predicted…

Q: O discounting factor. O number of periods. O compounding factor. O interest rate. cash flow is…

A: Present value is the equivalent value of the future cash flow based on the time value of money and…

Q: The payback criterion has problem(s) like Select one: O A. It considers the time value of money O B.…

A: The payback period refers to the period that is consumed by a project for meeting all its initial…

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: Which capital budgeting technique defines returns in terms of income instead of cash flows? 4 a) The…

A: Payback Period, IRR and Net Present Value is calculated using annual net cash inflows. And…

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: Select all the correct statements. The internal rate of return (IRR) generated by a positive cash…

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

Q: Suppose an investment has conventional cash flows with positive NPV. how would it impact your…

A: Conventional cash flow is a cash flow in which an investment or project has an initial cash outflow…

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.