Which of the following is true about present value calculations? Other things remaining equal, the present value of a future cash flow decreases if the investment time period increases.   Other things remaining equal, the present value of a future cash flow increases if the investment time period increases.

Q: How do you calculate Fixed Asset Turnover? What is the Free Cash Flow Ratio? What is the difference…

A: The answers for the questions on accounting ratios are discussed hereunder : Fixed Assets turn over…

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: Discuss Positive side effects and negative side effects cash flows? Provide examples. Explain the…

A: Solution- What is Cash flow-         Cash flows are internet the net of money and cash-equivalents…

Q: time value of money

A: The time value of money (TVM) is the concept that the money a person has now is worth more than the…

Q: Taking into consideration all the information given, determine          the Net Present Value of the…

A: In order to calculate the net present value which is important Matrix in the budgeting decisions…

Q: The present value of a lump sum future amount: O A. increases as the interest rate decreases. O B.…

A: The present value is defined as the discounted amount of the expected future value. The current…

Q: A) Inflation rate; B) Interest rate; C) Not doing something; 2. People prefer to receive cash: A)…

A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: Which of the following is true of the cash payback period? a.the longer the payback, the longer the…

A: Payback period is the period under which the amount of investment is expected to be recovered.…

Q: Assuming that we are not able to accurately predict cash flows , generally decreased risk is thought…

A: Cash flow at risk at risk tells us how changes in market factors can change the future cash flows.…

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: Why is the predictability of cash flow so important?

A: Cashflow is defined as the movement of cash into and outside the business in order to facilitate the…

Q: 3. Future value The principal of the time value of money is probably the single most important…

A: Time value of money: This concept tells us that a sum of money received today is  worth more than a…

Q: The future value of a single sum   A. is generally larger than the present sum.   B. decreases…

A: The future value (FV) is the value of an investment or sum of money at a specified future date,…

Q: Is the value of money affected by time, and if it is, in which direction? O a. It is not affected O…

A: The value of time of money is the idea that the money currently available is worth more than the…

Q: The value of a sum after investing over one or more periods is called a) Discount Value b) None…

A: Using Time value of money concepts

Q: Assets are priced such that _____________________ increase with the riskiness of future payoffs. A)…

A: Solution:- Payoff means the amount which is receivable on maturity.

Q: A financial analyst is treating a cash flow stream as a perpetuity.  The present value of the…

A: Present Value of Perpetuity: It represents the present worth of the perpetual cash flow stream. It…

Q: Can someone give an example or scenario of the following: 1. Time Value of Money 2. Inflation

A: Part 1:According to the concept of time value of money, the value of money available at the present…

Q: Can free cash flow continue to grow, even if ROIC falls? Explain.

A: If the working capital of the company can be managed free cash flow can grow at a better rate even…

Q: Future value refers to the worth today of some amount of money received in the future. O True False

A: Future value is defined as a technique for computing how much the present value of PV of a asset or…

Q: Question 2   Which one of the following methods of analysis could completely ignore some cash flows?…

A: Capital Budgeting involves various techniques which are used to evaluate different proposals to make…

Q: Finance   The time value of money refers to: a) Factors that show future value b) Factors that…

A: Time Value of Money refers to the concept that the sum of money that is in hand today will not worth…

Q: What happens to the present value of some fixed dollar amount to be received in the future as time…

A: Present value of some fixed dollar amount  is obtained by discounting the future cash flows using an…

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

A: Cash flows refer to the cash expenditure and cash receipt of the business over a specific time…

Q: Using the liquidity effect and income effect, explain the outcome on interest rates of a higher rate…

A: All else being equal , a larger money supply lowers market interest rates , making it less expensive…

Q: time value of money to general situations where compounding is induced by growth, inflation, or…

A: Time Value of Money is one of the most important concepts of finance when it comes to the…

Q: The value of money increases with time. A. true B. false

A: Value of Money is the purchasing power of a given amount of money in terms of goods and services it…

Q: How are incremental cash flows found in a replacement analysis?

A: The choice to substitute an existing asset with another is defined as the net current and internal…

Q: Explain your answer assuming that all variables are constant except for the one mentioned:

A: Capital budgeting is a method used for finding the profitability of investment proposals. This…

Q: All else equal, as market interest rates fall, the present value of a future cash flow. the…

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

Q: What is the definition of “opportunity cost” as it relates to the time value of money? It is the…

A: Opportunity cost is a fundamental concept in economics and finance that refers to the potential…

Q: Net present value and the payback period are examples of discounted cash flow methods used in…

A: Various methods used in capital investment decisions are Pay back period, Accounting Rate of…

Q: How can we determine the project cash flows in the absence of inflation?

A: Project Cash Flows are the Net cash flows of the project i.e. Sources of cash less uses of cash. The…

Q: The future value of an investment increases as the number of periods increases   True or Fase

A: Future value means the value of investment after x period of time compounded at the interest rate.

Q: To find NPV, it requires

A: NPV or net present value technique is used to determine the present value of all future cash flows.…

Q: What is the definition of “opportunity cost” as it relates to the time value of money? It is the…

A: Opportunity cost is a fundamental concept in economics and finance that refers to the potential…

Q: ding to the time value of money concept, also referred to as the present discounted value, is based…

A: Time value of concepts as the time period goes on due to the inflation goes on increasing and hence…

Q: Which of the following statements is true?   Multiple Choice   When NPV is 0, the IRR is equal to…

A: Net present value (NPV) is the value of all the cash flow of the investment (positive and negative)…

Q: How do unequal cash flows affect the future value of an investment?

A: Unequal cash flows, meaning that the amounts of money received or invested at different points in…

Q: The contract value of a GIC is __________; the fair value of a GIC is __________. Select one: a.…

A: GIC refers to the guaranteed investment plan which pays the interest and maturity to the beneficiary…

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.