How can we predict the future cash flows in a project?

Q: How can we prepare a project's cash flow statement?

A: Cash flow statement of a project means summarised view of all cash inflows and cash outflows of the…

Q: What is the profitability index of this project?

A: Profitability index is one of the capital budgeting method which helps in rejecting or accepting the…

Q: Is it worth the effort to estimate daily project cash flows?  Would doing so be helpful in the…

A: Cashflows are usually estimating yearly and then discounted at an appropriate discount rate

Q: The relationship between project cash flows, taxes and inflation.

A: Cash flows is the flow of money in or out from the business. There are two types of cash flows which…

Q: Describe the project cash-flow analysis?

A: The question is based on the concept of  cash flow analysis of  a project.

Q: Please provide examples of the cash inflows and outflows that may be considered when considering a…

A: The capital project is the project that helps in the improvement of various capital assets. It is…

Q: How can we aggregate the risk over the project life in terms of net present value?

A: It is an incorporation of the risk level of the project over the life of the in terms of NPV by way…

Q: How can we easily automate the process of computing the net present worthof any project cash flow…

A: Net present value (NPV) is the contrast between the present value of money inflows over some…

Q: Describe the process of developing cash flows for a project?

A: The project cash flow is required for the computation of NPV which further helps in analyzing the…

Q: /hat is the internal rate of return of the proposed project?

A: IRR(INTERNA RATE OF RETURN), is the rate that equates the present value of cash flows and the future…

Q: Why is it not always possible for the cash borrowed (released) from a project to be reinvested to…

A: We need to use the concept of capital budgeting and internal rate of return to answer the question.

Q: What is normal cash flow project?

A: Cash flow refers to the amount of cash that the company receives from investing into a project.…

Q: Depending on the cash flow assumption, should the project must use continuous cash flow? why?

A: In continuous discounting and continuous cash flows, the assumption is that the cash stream happens…

Q: What is the process of Developing Project Cash Flow Statements?

A: The cash flow statement for the Project is required to keep check the on cash incoming and cash…

Q: Why do we need to predict how certain costs will behave in response to change activity in project…

A: Cash flow analysis is the way by which financial health of the company can be checked. In this…

Q: What are the effects of Borrowing on Project Cash Flows?

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: Explain the Incremental Cash Flows from Undertaking a Project?

A: Incremental cash flows  It is an additional amount of net cash flows produced by the project…

Q: Identification of Relevant Cash Flows what is the incremental net cash flow of a project?

A: Incremental cash flows: Incremental cash flows are the ones that might be generated from a new…

Q: What will the cash flows for this project be?

A: In year 0, the cash flow would consist mainly of investment made in the truck and net working…

Q: How can we estimate Risky Cash Flow?

A: Companies always predict the cash flows related with the project because it helps to company to…

Q: Mathematically, how can we determine the rate of return for a project's cash flow?

A: IRRIt is the capital budgeting technique of discounted cash flow which gives a rate of return being…

Q: In a single sentence, explain how you can determine which cash flows should be included in the…

A: Single sentence: Cash flows that will only occur if the project is accepted should be included in…

Q: entify if each of the following would be included or excluded in forecasting cash flows for a…

A: When forecasting future cash flows only those cash flows, which will incur in future [ incremental ]…

Q: What is the estimated Internal Rate of Return (IRR) of the project? Should the project be accepted…

A: Calculate the initial investment and operating cash flow for the given investment: Excel formula:

Q: How can we measure the true rate of any internal portion of an investment project?

A: The question is based on the concept of evaluation of different components of a project, it can be…

Q: What is the procedure of developing Project Cash Flow Statements?

A: Cash flow is the amount of liquid cash that flows in and out of the company in a particular…

Q: How can we compute incremental cash flow, and IRR?

A: Incremental cash flows and IRR, both are the terms of Capital Budgeting decisions. Incremental cash…

Q: What do we mean by the economic life of a project?

A: The time span for which an asset or a project generates profits for the owner is known as the…

Q: Define “the stand-alone principle” applying in evaluating projects and discuss the types of…

A: Company's management discretion is to set the company's capital structure that is applicable at the…

Q: Mathematically, we can determine the rate of return for a given project’s cash flow series by…

A: When Cash Flows are discounted by using Internal Rate of Return for a period of cash flows held.…

Q: How can we consider the Future Worth and Project Balance?

A: The question is based on the concept of evaluation of long term investment, future worth and project…

Q: What should a firm’s goal be regarding the cash conversion cycle,holding other things constant?…

A: The cash conversion cycle refers to the number of days between paying for crude materials or…

Q: Define the term Profitability Index? How can we consider the profitability index of a project?

A: The profitability index (PI), then again alluded to as the value investment ratio (VIR) or profit…

Q: Explain project cash flows

A: Project cash flow is a dynamic process, in which the money moves into and out of the business. Its…

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: How can we develop the cash flow series over the project life based on the assumption of most likely…

A: Below is the cash flow developed on the base of assumption:

Q: Net Present Value Suppose a project has conventional cash flows and a positive NPV. What do you know…

A: Capital budgeting techniques are the methodologies adopted by the management of the company with the…

Q: Explain Net Future Worth and Project Balance Diagram?

A: Net future worth is future value of the current assets at some future specific date, it is…

Q: the cash flows for this project be?

A: Cash flow shows the amount of cash inflow and outflow from the company. The cash flow statement…

Q: What is the project's internal rate of return?

A: Answer has been given in the next sheet.

Q: How can we determine the project cash flows over the project life?

A: Cash Flow Statement is a part of the Financial Statement of a company. It literally means a…

Q: The future benefits received from investing in a project are the projects? Net cash flows Net…

A: Net cash flows are the returns from the project generated and received in the future.

Q: What is the project's cash flow?

A: Statement of cash flow: It refers to a financial statement that shows all the cash payments and…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.