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: Which of the following concepts is true regarding the time value of money? 1. Present value…

A: The time value of money recognizes the idea that the value of an amount of money today differs from…

Q: When calculating the present worth of a uniform series using the relationship P = A(P|A, i%,n), the…

A: P equals to A times the factor of P over A and this factor known as the Uniform Series of Present…

Q: The internal rate of return measures the:   Select one:   a. discount rate that the firm uses in…

A: The internal rate of return, also known as the discounting rate, makes discounted future cash flows…

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: present value is the

A: https://docs.google.com/document/d/19Usy902_lK6tWQ3RgtQiUedGybbYnqlidq6sySnT8YI/edit

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: To calculate a terminal value, one divides the next period's cash flow by the spread between the and…

A: You are absolutely right. The formula you described is one way to calculate the terminal value of a…

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: 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: 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: 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: Present value is a. the value now of a future amount. b. the amount that must be invested now to…

A: Present Value: It states that the value of  money today is worth more than the same amount of money…

Q: What's the primary "adjustment" needed to convert a projected annual Income Statement to a projected…

A: The primary adjustment needed to convert a projected annual Income Statement to a Projected Cash…

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: 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: 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: 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: 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: 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: which of the following statements are correct given a constant interest rate and constant giver year…

A: Answer: The relationship between future value and present value is direct.   Hence when the…

Q: A cash flow measured in real dollars: Multiple Choice O coincides with the amount of contemplated…

A: Real dollars represent the purchasing power of money adjusted for inflation or changes in the value…

Q: Consider a company with a Reddington Immune cash flow stream of assets and liabilities. The asset…

A: Net Present value method  (NPV) considers the time value of money. It is excess of present value of…

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: 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: Does an increase in the long-term growth rate of free cash flowsalways cause an increase in the…

A: Free cash flows are cash flows that are generated within the company from its operating activities…

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: 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: 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: Everything else equal, the annual compounding will always give the highest future value whether…

A: Effective interest rate is the interest rate after considering the effect of compounding and more is…

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: What happens to a future value is you increased the rate, r? What happens to a present value?

A: When the interest rate increases, the future value of a sum now will increase. This is because the…

Q: Which of the following is not a factor in explaining why the present value of a future dollar is…

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

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: I. If there is a positive NPV, IRR is higher than the cost of capital. II. If annual net cash…

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

Q: in general, positive cash flows are moved to the end of the interest period in which they happen.…

A: Flows of cash whether inflow or outflow in the business refers as cash flows, generally these flows…

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…

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.