Q: Does the payback-period analysis ignore differences in the timing of cash flows?
A: The time value of money (TVM) is the possibility that in view of its inevitable procuring influence,…
Q: When considering the discount rate to use for discounting cash flows of an entire company, we can…
A: The discount rate is the loan cost used to decide the current worth of future incomes in a…
Q: A conservative approach to reinvesting projected cash flows (the reinvestment assumption) would use…
A: “Hey, since there are multiple different questions posted, we will answer first question. If you…
Q: One problem with free cash flow method is gives too much weight to countinung value. Do you agree
A: Answer :- YES
Q: Which of the following is not an approach to replacement analysis? Solve, a. Cash flow approach b.…
A: Replacement analysis is the study of organizing, reasoning and implementation of successful…
Q: What condition regarding cash flows would cause more than oneIRR to exist?
A: IRR (Internal Rate of Return) is the interest rate where net present value of a project equals to…
Q: a) Determine the present value of the company's liability. b) Without doing any calculations,…
A: Determine the present value of the company’s liability. LNP Present Value of Liability = Debt…
Q: Define Restricted Cash.
A: Restricted cash refers to money that is held for a specific purpose and therefore not available to…
Q: esearch articles that deal with the benefits which might be derived from the Statement of Cash…
A: In accounting cash flow statement is that financial statement that shows different soucres of cash…
Q: True/false Under IFRS, the discount rate should reflect risks for which future cash flow…
A: False Refer step 2 for explanation
Q: echnical problems associated with the internal rate of return include:
A: IRR (Internal Rate of Return): It is the rate of return that makes the net present value of the…
Q: 3. Recommend two ways for Sunset Pools to improve cash flow from receivables.
A: Ratio analysis is a tool used by the financial analyst to measure the financial performance of the…
Q: One of the shortcoming of the payback method is that it ignores cash flows after the payback period.…
A: Payback method has serious disadvantages like it Ignores the time value of money.
Q: The net present value (NPV) method weighs early receipts of cash much more heavily than moredistant…
A: Net Present Value method:- Net present value is the one of the technique of capital budgeting. This…
Q: limitation of discounted cash flow method.
A: Discounted cash flows - - Discounted cash flows method is used to estimate the value of an…
Q: If current liabilities increase, what is the effect on cash? What about a decrease in current…
A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…
Q: Please construct a complete, original answer for the following question in no more than sever…
A: Meaning: Cash ratio: Cash Ratio is measurement of a company's liquidity, specifically the ratio of a…
Q: yback method, the Accounting Rate of Return, and Discounted Cash Flow Model (Ne
A: Step 1 A huge budget is a method through which a company assesses possible substantial projects or…
Q: What are the problems of using cash flow matching in practice
A: Cash flow matching is one of strategy used to match required liabilities due through cash flow from…
Q: 3. What are some other potential cash inflowsbesides collections?
A: Cash inflow means that money goes into a company. Sales, investment, or funding may be. It's the…
Q: All of the following are weaknesses of the payback period EXCEPT Select one: a. only an implicit…
A: Payback period is period required to recover initial investment in the project.
Q: Achieving profitability will automatically assure sufficient amounts of cash. True or false?
A: Profitability is the ability of the company to earn a profit. Profit is an amount of revenue over…
Q: In the discounted cashflow method, the discount rate is used for the following reasons EXCEPT a. it…
A: Discounted Cashflow Method: The discounted cash flow (DCF) approach is a method of valuation that is…
Q: Two areas of Weakness in handling cash
A: Internal control weakness implies a failure in the implementation of internal control systems of the…
Q: What are the strenghts and weaknesses of the discount cash flow methods?
A: discounted cash flow methods are used to calculate to find the future cash inflow discount into its…
Q: I woud like to know what is the formula for accumulated deficit and cash and cash equivalents (the…
A: In this question we write formula for accumulated deficit and cash and cash equivalents.
Q: why discounted cash flow methods are preferred to the more traditional techniques of payback and…
A: Before knowing the reason of preference for the use of any method, let us see the basic description…
Q: What are the disadvantages of only accounting for cash income and expenses in basic cost and return…
A: Cost and return analysis is also regarded as cost-benefit analysis which is carried out to make…
Q: Why are the cash flows so difficult to estimate accurately?
A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…
Q: there are two policies to consider when payment period is less than compounding period. These are…
A: When payment period is more than the compounding period for a single amount, there are an infinite…
Q: Calculate the present value and future value of an uneven cash flow stream.
A: A stream of cash flow is uneven when all the amounts in the series of cash flows are unequal .i.e.,…
Q: disadvantages of using the relative techniques in valuation compared to discounted cash flow…
A:
Q: What are the difficulties and problems when it comes to using the free cash flow valuation model
A: The free cash flow valuation model is one of the most used and one of the most popular valuation…
Q: What is the principal disadvantage of the direct method of reporting cash flows from operating…
A: Cash flows from operating activities is an important section of cash flow statement which shows all…
Q: Based on your understanding of the fAactors that affect the cost of money, Identify which of the…
A: Higher inflation rate would lead to higher interest or nominal rate on the borrowed amount. This is…
Q: fly discuss the following 1. What are advantage and disadvantages of cash method and accrual method?…
A: Cash basis of accounting: It recognizes the revenue and expenses when these are actually received…
Q: What are the key factors that can lead to an under/overstatement of the cash balance
A: Cash balance is the balance appearing in the Cash edger or Cash Books after all income and…
Q: Briefly explain the concept of discounted-cash-flow analysis. What are the two common methods of…
A:
Q: period
A: Payback period is defined as the time taken to recover the cost of an investment. In other words it…
Q: Why is it more reasonable to assume, as the NPV rule does, that the intermediate cash flows are…
A: Before investing in new assets or projects, profitability is evaluated by using various methods like…
Q: Describe three different examples of analysis where you might use discounted cash flows.
A: Discounted cash is frequently used many ways to calculate equivalent present to take final decisions…
Q: The discounted payback method discounts cash flows at the opportunity cost of capital and then…
A: Cost of capital denotes that cost which a firm is required to pay to finance the amount for the…
Q: Why is the indirect method of cash flow confusing and why is it helpful?
A: Cash Flow Statement - Under Cash Flow there are three type activities involved - 1. Operating…
Explain two (2) disadvantages of discounted cashflow analysis. |
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- One problem with free cash flow method is gives too much weight to countinung value. Do you agreeBriefly explain the concept of discounted-cash-flow analysis. What are the two common methods of discounted- cash-flow analysis?Give an example of a strength and a weakness of the accounting rate of return approach.