Define temporary net operating working capital

Q: Explain in details the rationale and the treatment of change in net working capital items during the…

A: NPV:  When performing financial research to assess the viability of investing in a project or…

Q: Which capital investment methods require the use of a present value table?

A: Net Present Value: It is a measure of profitability for a project used primarily in capital…

Q: Explain what net operating working capital is, and explain how changes in that quantity can affect…

A: Net operating working capital is defined as excess of current operating assets over current…

Q: The formula to calculate EVA is Net operating profit - (invested capital x weighted average cost of…

A: EVA, or economic value profit, is a measure of a corporation's economic success that is based on…

Q: Define the term capital expenditure.

A:

Q: Define Fixed-asset turnover ratio.

A: Fixed Asset turnover: It is a ratio that measures the productive capacity of the fixed assets to…

Q: How can we determine the non-recurring costs such as capital expenditure and residual value at the…

A: Non-Recurring Costs: These are the cost that does not re-occur or occur again and again in the usual…

Q: What are the after effects (both short term and long term) of capitalizing the cable costs of…

A: Capital expenditures (CapEx) are cash outlays made by a company to purchase, improve, and maintain…

Q: Any effective Conclusion of Working Capital Management, financial performance and future perspective

A: Financial performance of a firm represents the profitability, liquidity and solvency position of a…

Q: . How are the component costs combined to forma weighted average cost of capital (WACC),and why is…

A: It is the discounted rate that has been calculated by the company on the basis of which present…

Q: Define target capital structure

A: Target capital structure is a proportion of equity, debt, or preferred stock in such a manner that…

Q: How can we determine the net change in working capital requirements?

A: Working capital:Working capital refers to the excess amount of current assets over its current…

Q: discuss FASB standard in working capital

A: The Financial Accounting Standards Board (FASB) is a private standard-setting body whose primary…

Q: Does the accrual accounting rate-of-return method consider income earned throughout a project's…

A: The accrual accounting rate-of-return(ARR) formula splits the average income of an asset by the…

Q: Why does the economic-enterprise budget include depreciation or capital recovery and fixed costs?

A: A budget is the estimation of costs, expenses and incomes. Fixed costs are those costs which lasts…

Q: Explain why net operating working capital is included in a capital budgeting analysis andhow it is…

A: The net operating working capital is included in a capital budgeting analysis andrecovered at the…

Q: Define capital intensity ratio

A: Formula to compute capital intensity ratio:

Q: What is permanent net operating working capital?

A: Permanent net operating work capital is also referred to as fixed work capital. Continuous work…

Q: What is net operating working capital (NOWC)?

A: Working Capital The working capital (wc) is a financial term that represents the operating liquidity…

Q: Derivation of capital asset pricing model

A: The Capital Asset Pricing Model (CAPM) relates the returns on individual assets or entire portfolios…

Q: Explain project cost of capital, r

A: In order to achieve the capital expenditure venture, such as the construction of a new plant, the…

Q: Define capital gains yield

A: Capital gain yield in finance is an important concept because it helps the investors to know the…

Q: Define the term Working Capital?

A:

Q: Calculate the weighted average cost of capital.

A: Weighted average cost of capital = (Cost of equity * weight of equity) + (Cost of debt * Weight of…

Q: Define zero working capital target

A: Companies always thrive to maintain the optimum working capital such that it’s business activity…

Q: Define Working capital turnover

A: Working capital represents the liquidity of a company as it shows the difference between the current…

Q: Explain the risk-profitability tradeoff in working capital management.

A: Working capital management involves ensuring that the company is able to meet its short-term…

Q: What is net investment in operating capital?

A: The Net investment in operating capital is a two-part study that discusses two various types of…

Q: How can we calculate ownership (capital) cost, annual operating cost, and equivalent annual cost?

A: Ownership cost is the cost of owning a particular asset/equipment and is usually the purchase price…

Q: how to find net operating working capital

A: Working capital or net working capital is arrived by deducting Current liabilities from Current…

Q: Define divisional cost of capital

A: A firm’s capital structure is the mix of debt and equity. The cost of procuring such debt and equity…

Q: What is the difference between the Company cost of capital and  project cost of capital?

A: Cost of capital of a company is also called as weighted average cost of capital.  It considers the…

Q: The cost of capital represents a. the capital outlay required in a project. b. the initial…

A: The Cost of Capital is a representative of cost of the current total capital financing of the…

Q: weighted average cost of capital

A: WACC = (kd * (1 - t) * Wd) + (kp * Wp) + (ke * We); where, kd = Pre-tax cost of debt t = Tax rate Wd…

Q: Working capital management refers to

A: Working capital management may be a business strategy designed to confirm that a corporation…

Q: Discuss IFRS standards on working capital

A: Working Capital: Working capital is defined as the difference between an entity's current assets and…

Q: The estimated capitalized cost is $

A: A stream of equal cash flows paid or received periodically is termed as annuity. Annuity is either…

Q: Define paid-in capital

A: Definition: Stockholders’ equity: Stockholders’ equity is referred to as the claims of the…

Q: monetary working capital

A: Working capital is the capital that keeps revolving around the business. This is the capital that…

Q: Methods of controlling various elements of working capital are

A: Effective working capital management optimizes the operating cycle , minimize the cost of working…

Q: how to compute the percentage change in working capital?

A: Working capital is the capital which is used to operate the day to day business operations like,…

Q: revaluation surplus,

A: Definition: Revaluation Of asset: Revaluation describes the true value of the capital assets which…

Q: Explain in words the difference between net working capital and net operatingworking capital.

A: The working capital is the portion of total capital that is required in a business to meet the…

Q: Example of Capital Allocation Line (CAL)

A: Capital allocation line: Capital allocation line is also named as capital market line. Capital…

Q: . Determine the cost of each capital structure component. • Calculate the weighted average cost of…

A: WACC: It is the weighted average cost of capital of the firm for raising capital from different…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.