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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- In the discounted cashflow method, the discount rate is used for the following reasons EXCEPTa. it removes the timing differences of cashflows.b. it serves as the required rate of return of the asset being valued.c. it removes the expected riskiness of differing assetsd. it equalizes cash inflows to cash outflows so that the value would equal to the market value.Answer the problem using ordinary uniform cash flow equation.One of the shortcoming of the payback method is that it ignores cash flows after the payback period. True False