How can we convert any cash flow elements in constant dollars into actual dollars?

Q: The internal rate of return (IRR) is The same thing as the cost of capital. The discount rate that…

A: IRR is the internal rate of return. It is the rate at which net present value is equal to zero.…

Q: the discount rate that equates the present value of the cash inflows with the present value of the…

A: In capital budgeting decisions calculate net present value is very important.

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: We start the process of building a cash forecast with predicting the cash inflow from future sales.…

A: The forecasting method where the current sales are forecasted to ascertain the level of future sales…

Q: What is the difference between the sources (in nows) and uses (out nows) of cash?

A: The question is based on the concept of cash flow statement and cash flow analysis for a particular…

Q: s. What is the present value of these cash flows if the discount rate is 189%?

A: Present Value: It represents the present worth of the future annual cash flow stream. It is…

Q: Where is the short term investment shown in the Cash flow statement?

A: A short-term investment: It also known as a temporary investment or marketable security. It is a…

Q: The PW-criterion accounts for the time value of money by converting the cash flows to the period…

A: Present worth (PW) is the current value of the future cash flow, for the specific time at specific…

Q: What is the payback period for the machine, assuming all cash flows occur evenly.

A: Payback period is the number of years it would take for the company to recover its capital invested.…

Q: What is the present worth for the investment represented by the given cash flow? Interest is 12%.

A: Present Worthbis the sum of present value of cash flows discounted at the required rate of return.

Q: How much is the expected cash flow disregarding other simulations?

A: Capital budgeting is a method used for finding the profitability of investment proposals. It…

Q: What is Internal Rate of Return - Monthly Fixed Cash Flows with Reversions?  Please provide…

A: The internal rate of return is the one of the discounted techniques of capital budgeting which is…

Q: cash

A: The term cash flow refers to the  net of cash after considering the inflows & outflows. Inflows…

Q: How much should be reported as cash inflows from operating activities?

A: Operating activity refers to the normal business activity of a company in which transaction like…

Q: There are four variables in the process of adjusting single cash flow amounts for the time value of…

A: Formulas: Future value = Present value*(1+rate)^years Future value = FV Present value = PV Rate = i…

Q: Which of the following methods consider the time value of money? A. payback and accounting rate of…

A: Time Value of Money The time value of money is the concept that money you have now is worth more…

Q: compute for the cash distributed to DEF. ENTIN DIFIC

A: At the time of liquidation of partnership firm, Realization account is prepared by the entity.  All…

Q: How can we calculate the present worth of actual dollars?

A: Present worth is the current value with a respective rate of return, of a future measure of cash or…

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: In this method, the company compares the amount spent on the investment with the discounted expected…

A: a. Payback is the period in which the investment can break-even. b. NRV is the difference of…

Q: How can we estimate the profits (more precisely, the cash nows) that the assets will generate during…

A: It is a process of acquiring an approximation or projection or forecast of a firm’s future budgetary…

Q: What is the Time Value of Money (TVM)? Specifically, how do inflation and compound  interest effect…

A: Time value of money states that a sum of money has more value today than the same sum at a future…

Q: Which of the following statements best describes the difference between the IRR method and the MIRR…

A: Note: As per the policy, we are supposed to solve one question at a time. Kindly repost the further…

Q: Is it possible for a firm’s cash cycle to be longer than its operating cycle? Explain why or why…

A: Operating cycle is the average time between acquisition of inventory and conversion into cash. Cash…

Q: Explain in your own words the concept of the time value of money.

A: Introduction: The time value of money come from the concept that rational savers desire to obtain…

Q: e following methods of capital budgeting tries to equate the present value of cash inflows to…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: Determine by graphical method the rate of return on this cash flow. Try i = 2% and i = 10%

A: Year Cash Flow 0 -80 1 -30 2 -20 3 150

Q: The difference between the sources (in nows) and uses (out nows) of cash represents the net cash…

A: Answer: Cash flow is nothing but the inflows and outflows of the business income. Cash flow is…

Q: What is the incremental cash flows from switching credit policies?

A: Incremental cash flow is the extra cash flow a business will generate by investment in a new project…

Q: we can still calculate the IRR on incremental cash flows. True or false? Explain with example?

A: True, IRR can be still computed on incremental cash flow. IRRIt is the technique of discounted cash…

Q: Evaluate the required value based on the given standard notation by using the cash flow diagram…

A: The notation BD 50,000 (P/F, 5%, 12) wants us to find the present value of BD 50000. F = BD 50000 r…

Q: Operating Cash Flow (OCF) is equal to what?

A: Operating cash flow (OCF) is the cash flow derived from the operating activities. It excludes the…

Q: How does credit policy affect the cash conversioncycle as discussed in the last chapter?

A: Cash Conversion Cycle measures the number of days it takes for a company to convert its inventory…

Q: What is meant by an incremental cash flow? What do you need to ask yourself when deciding whether a…

A: When a firm takes on a new project, there is new cash flow associated with this new project. The…

Q: Illustrate the process of computing the equivalent present worth when all cash flows are given in…

A: The process to compute the equivalent present worth are: Identify the interest rate Identify the…

Q: Explain what is meant by cash management and the cash conversion cycle and calculate the effective…

A: cash is considered to be the one of the important aspect of the management. management of cash plays…

Q: The discount rate to be used for calculating the present value of a stream of cash flow should be…

A: Discount rate is defined as rate of the return, which helps in the computation of the future's DCF…

Q: Illustrate the concept of present-worth analysis based on cash flowequivalence along with the…

A: The concept of present-worth analysis based on cash flow equivalence along with the payback period.…