What is the maturity period required for an investment to qualify under the definitions of a cash equivalent?

Q: What is alternative cash flow measures?

A: Cash flow refers to the amount of cash that moves in and out of the business because of its…

Q: What is Internal Rate of Return - Variable Cash Flows with Reversion?  Please provide examples.

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

Q: Differentiate between Reserve capital and Capital Reserve on the basis of time when it can be used.

A: Capital:   It refers to the funds raised to support the business. It is the difference between the…

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: How is the value of an asset determined by predicted future cash flows?

A: The Answer

Q: What distinguishes a capital investment from other investments?

A: Investments: It is the method by which an investor increases his value over some time for future…

Q: The relationship between project cash flows, taxes and inflation.

A: Cash flows is the flow of money in or out from the business. There are two types of cash flows which…

Q: How can we use special financial functions to determine the total interest?

A: Financial functions have made financial calculations easy using excel, they make you calculate the…

Q: What is the purpose of valuation in terms of financ

A: Introduction : In simple words, finance refers to gathering of money by one entity or individual…

Q: What is the cash conversion cycle? What is its equation?

A: The CCC tells firms that in how many days’ firms will realize its cash from its operations. It is 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 are the different risks associated in the accounting of investments?

A: Answer: There is always risk while auditing and accounting.

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 cash flow hedges.

A: Derivatives:   Derivative is a product whose value is derived from underlying assets called base.…

Q: Where is the short term investment shown in the Cash flow statement?

A: A short-term investment: It also known as a temporary investment or marketable security. It is a…

Q: What are the interest formulas for single cash flows?

A: Present Value: The value of today’s amount to be paid or received in the future at a compound…

Q: Explain the Principle of Investing in Financial Assets?

A: Securities are the financial assets that are traded in the financial or secondary or securities…

Q: What is the Principle of Investing in Financial Assets?

A: A financial asset is a liquid asset that gets its value from an authoritative right or guarantee to…

Q: How is liquidity risk associated with the asset side of the balance sheet?

A: Liquidity risk in an asset will motivate the investor/buyer to pay a lower price for acquiring it.

Q: What is normal cash flow project?

A: Cash flow refers to the amount of cash that the company receives from investing into a project.…

Q: Describe the Procedures used to determine the rate of return internal to nonsimple investments?

A: Procedure to compute the rate of return internal to non-simple investmentIt is an investment for…

Q: What cash flows are discounted in the FCFE model, and what is the discount rate?

A: FCFE MODEL: FCFR is known as free cash flow to equity or levered free cash flow, it is a model…

Q: How do investors account for risk when determining an asset’s value?

A: Asset valuation helps to determine the fair value of the asset. Various asset valuation models such…

Q: What are the effects of Borrowing on Project Cash Flows?

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

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

A: The Answer :

Q: acroprudential measures overlap?

A: Assessing their effectiveness is complicated by selection bias; countries which change their…

Q: statements are true of long-term investments? They can be considered cash equivalents.

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: The costs or benefits of holding or not holding money over time refers to the concept of: the time…

A: The time value of money (Correct): The time value of money is a financial concept that suggests that…

Q: Should short-term

A: The cost of capital is the rate of return that is expected by the firm to earn from its investment…

Q: Why are investments in marketable securities shown sepa-rately from cash equivalents in the balance…

A:

Q: How can we develop the techniques for establishing cash flow equivalence with compound-interest…

A: Answer: To measure the equivalence of the sequence of compound interest factors used to extract the…

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: What makes current liabilities different from long term liabilities?

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: Describe the Principle of Investing in Financial Assets?

A: The financial assets are those assets which are not having a physical existence like stocks, fixed…

Q: Explain the risk-return trade-off for liquid assets.

A: Risk return trade off tell relationship between the risk and return.