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What are the best functions to use when evaluating projects with uneven cashflows?
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- Which of the following cash flows should not be considered when evaluating a project? Changes in working capital Shipping and installation costs Sunk costs Opportunity costs ExternalitiesWhat are the problems of using cash flow matching in practiceIs it always necessary to adjust projects’ cash flows when different projects haveunequal lives? Explain.
- Which of the following is a disadvantage of the IRR project evaluation method? Select one: a. It does not take into account the time value of money. b. If there are negative cash flows after positive cash flows, there may be zero or multiple internal rates of return. c. It does not make adequate allowance for risk. d. It focuses on accounting profit rather than cash flow as the source of value.Is it worth the effort to estimate daily project cash flows? Would doing so be helpful in the investment analysis? How would the results be negatively or positively affected?Why do we need to predict how certain costs will behave in response to change activity in project cash-flow analysis?
- Why is it important to identify what costs will be eliminated in the conduct of financial turnaround programHow would you recognize the importance of using contingency funds for cost estimation, budgeting and controlExplain why the NPV is a more accurate measure than IRR when evaluating the financial profitability of a project.