Introduction To Managerial Accounting
8th Edition
ISBN: 9781259917066
Author: BREWER, Peter C., Garrison, Ray H., Noreen, Eric W.
Publisher: Mcgraw-hill Education,
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Chapter 13, Problem 9Q
A business executive once stated, “
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15. Since a financial manager prefers to receive cash flows as fast as possible,____.A. a longer depreciable life is preferred to a shorter oneB. a shorter depreciable life is preferred to a longer oneC. the manager is not concerned with depreciable life, because depreciation is a noncash expenseD. the manager is not concerned with depreciable life, because once depreciation is a sunk cost.
“The trouble with discounted cash flow methods is that they ignore depreciation.” Do you agree? Explain.
Hi
thanks for your help.
Why you have not taken depreciation(deduct from profit and then add to obtain cash flows) into account?
Chapter 13 Solutions
Introduction To Managerial Accounting
Ch. 13.A - Prob. 1ECh. 13.A - Prob. 2ECh. 13.A - Prob. 3ECh. 13.A - Prob. 4ECh. 13.A - Prob. 5PCh. 13.A - Prob. 6PCh. 13.A - Prob. 7PCh. 13 - Prob. 1QCh. 13 - Prob. 2QCh. 13 - Prob. 3Q
Ch. 13 - What general guidelines can you provide for...Ch. 13 - Prob. 5QCh. 13 - Prob. 6QCh. 13 - Prob. 7QCh. 13 - Prob. 8QCh. 13 - A business executive once stated, “Depreciation is...Ch. 13 - If the Accounts Receivable balance increases...Ch. 13 - Would a sale of equipment for cash be considered a...Ch. 13 - Prob. 12QCh. 13 - Ravenna Company is a merchandiser that uses the...Ch. 13 - Prob. 2F15Ch. 13 - Prob. 3F15Ch. 13 - Ravenna Company is a merchandiser that uses the...Ch. 13 - Prob. 5F15Ch. 13 - Ravenna Company is a merchandiser that uses the...Ch. 13 - Ravenna Company is a merchandiser that uses the...Ch. 13 - Prob. 8F15Ch. 13 - Prob. 9F15Ch. 13 - Prob. 10F15Ch. 13 - Prob. 11F15Ch. 13 - Ravenna Company is a merchandiser that uses the...Ch. 13 - Ravenna Company is a merchandiser that uses the...Ch. 13 - Prob. 14F15Ch. 13 - Prob. 15F15Ch. 13 - Prob. 1ECh. 13 - Net Cash Provided by Operating Activities For the...Ch. 13 - Prob. 3ECh. 13 - Prob. 4ECh. 13 - Net Cash Provided by Operating Activities Changes...Ch. 13 - Prepare a Statement of Cash Flows; Free Cash Flow...Ch. 13 - Prob. 7PCh. 13 - Prob. 8PCh. 13 - Prob. 9PCh. 13 - Prepare a Statement of Cash Flows; Free Cash...Ch. 13 - Prob. 11PCh. 13 - Prepare a Statement of Cash Flows A comparative...Ch. 13 - Prob. 13PCh. 13 - Prob. 14P
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Why does a company evaluate both the money allocated to a project and the time allocated to the project? What is the next thing a company needs to do after it establishes investment criteria? What is the payback method used to determine? Why do businesses consider the time value of money before making an investment decision? A fellow student studying Financial Accounting says, “The net present value (NPV) weighs early receipts of cash much more heavily than more distant receipts of cash.” Do you agree or disagree? Why?arrow_forwardWhat would be a business example that shows how depreciation and accelerated depreciation can affect project cash flows?arrow_forward“When evaluating projects, we’re concerned with only the relevant incremental after-tax cash flows. Therefore, because depreciation is a non-cash expense, we should ignore its effects when evaluating projects.” Critically evaluate this statement.arrow_forward
- Which of the following would be considered a terminal cash flow? A. The expected salvage value of the asset B. Any tax payments or refunds associated with the salvage value of the asset C. Recapture of any investment in working capital that was included as an incremental cash outlay D. All of the abovearrow_forwardWhich of the following would be most likely be included as part of free cash flows? The lost revenue that could have been used if a warehouse was leased out The cost of an already completed marketing study The interest that will be paid to debt holders to finance the project The salary paid to the firm's CEO To UN 스용 515arrow_forwardWhich among the following is not recommended for solving cash problems of a business? a.Arrange for overdraft facilities in case a shortage is forecasted b.Allowing extra time to customers to pay off bills so as to boost the sales. c.Finding a cheaper source of supply of raw materials d.Disposing off assets that are not being put to effective usearrow_forward
- Which of the following is not a typical cash inflow in capital investment: a. cash savings on regular expenses. b. salvage value of old machine. c. proceeds from financing. d. reduction in working capital.arrow_forwardIf a company has some extra cash that is lying idle and wants liquidity and safety in a government investment, what type of investment is likely to be chosen?arrow_forwardWhich of the following statements is CORRECT? The discounted payback method recognizes all cash flows over a project's life, and it also adjusts these cash flows to account for the time value of money. The regular payback method was, years ago, widely used, but virtually no companies even calculate the payback today. The regular payback is useful as an indicator of a project's liquidity because it gives managers an idea of how long it will take to recover the funds invested in a project. The regular payback does not consider cash flows beyond the payback year, but the discounted payback overcomes this defect. The regular payback method recognizes all cash flows over a project's life.arrow_forward
- Determine ways to improve the cash flows of an organization by addressing the following questions: What methods can be used to speed up a firm’s cash inflows? What methods can be used to delay a firm’s cash outflows? What are some of the cash management strategies used by your organization or by organizations that you know? Are there any ethical items to consider with any of these methods or strategies?arrow_forwardWhich of the following is an advantage of the cash payback method? a. takes into consideration the time value of money b. easy to use c. includes the cash flow over the entire life of the proposal d. emphasizes accounting incomearrow_forward(7.1) Which of the following cash flows is NOT a free cash flow associated with a project? Select one: a. The costs of buying land in another state to allow expansion of operations to that state. b. The cost of transporting machinery to another state to allow expansion of operations to that state. c. Underwriting costs resulting from the issue of new shares to raise the capital needed to expand operations interstate. d. Relocations costs paid to existing employees as a result of the decision to expand interstate. Clear my choicearrow_forward
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