If current liabilities increase, what is the effect on cash? What about a decrease in current liabilities?

Q: What is Internal Rate of Return - Variable Cash Flows with Reversion?  Please provide examples.

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

Q: How can information based on past transactions be usedto predict future cash flows?

A: Past transactions can be used to predict future cash flows is a true statement.

Q: What are the major sources of cash (inflows) in a statement of cash flows? What are the major uses…

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Q: How is IRR calculated with equal net cash inflows?

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Q: How calculate accumulated cash flow, discounted cash flow and Accumulated discounted cash flow?

A: For calculating the accumulated cash flows we have to start from year 1 till the year when pay- back…

Q: What are normal and nonnormal cash flows?

A: Answer: Normal cash flows projects are those in which one or two cash outflows occur at the outset…

Q: What happens to cash if the value of other current assets rises? Is it possible that current assets,…

A: Here is the answer :

Q: What is the present value of the combined cash flows?

A: Present Value: It represents the present value of the future cash flow stream.  It is computed by…

Q: what are usefulness and weakness of discounted cash flow method?

A: Discounted Cashflow Method is the Method in which we compare Initial Project cost with expected…

Q: Finding the present value of future cash flows is called O A. analytics, tracking and finding the…

A: Capital Budgeting: It is a process a company undertakes for the evaluation of potential investments…

Q: What does the cash ratio help determine, and how is it calculated?

A: Cash ratio is a liquidity ratio that compares the assets of the company with its current…

Q: What are the discounted cash flow techniques?

A: Discounted cash flow (DCF) is a valuation method used to estimate the value of an investment based…

Q: Explain the term Cash Equivalency?

A: It is an evaluation procedure by which the cost of comparable properties selling at various funding…

Q: What are the interest formulas for single cash flows?

A: Present Value: The value of today’s amount to be paid or received in the future at a compound…

Q: How to calculate a cash flow ?

A: Cash flow means the movement of money or cash and its equivalents. It is the amount of cash…

Q: How is IRR calculated with unequal net cash inflows?

A: Definition:   Internal rate of return method (IRR): Internal rate of return method is one of the…

Q: What is Calculation of Net Cash Flow?  Please provide example.

A: Net Cash Flow: It is the total amount of money created or lost over a particular timeframe, normally…

Q: What are net operating loss carryforwards and how can they provide cash savings?

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Q: What sorts of questions about future cash flows do investors and creditors use the income statement…

A: This question explains about the cash flows , investors and creditors use the income statement

Q: What is the net cash provided by investing activities?

A: Introduction Cash flow statement: Cash flow statement is the financial statement which reports cash…

Q: If current assets other than cash increase, what is the effect on cash? What about a decrease in…

A: Statement of cash flows: It is one of the financial statement that shows the cash and cash…

Q: Describe the process of computing the equivalent cash value?

A: Equivalent cash value is the value that has equal worth as much as cash has. Generally, bank…

Q: What is the difference between net cash provided by operating activities and free cash flow?

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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: How do I find what the net increase or decrease is in cash on a Statement of Cash Flow?

A: Add the net cash flows from all three activities of statement of cash flows (i.e. operating…

Q: What is irregular cash flow stream?

A: Cash Flow has a flow concept. There can either be cash inflow or cash outflow. Generally, for…

Q: What is the process of solving a cash flow for an unknown interest rate?

A: Time Value of Money: According to the concept of TVM, the company always interested to know the PV…

Q: What is discounting and why do we discount future cash flows?

A: A cash flow statement is a financial statement that shows how much cash and cash equivalents are…

Q: Define the positive cash flows?

A: The positive cash flow is the state of the organization wherein money inflows to an enterprise over…

Q: What is Equilant cash value?

A: Cash and cash equivalents alludes to the detail on the balance sheet that reports the estimation of…

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: 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: cash inflows are greater than cash outflows, then there is a new ( INCREASE / DECREASE) in Cash.…

A: Cashflow represents the inflows and outflows of cash. When the cash flows into the business, there…

Q: What is the difference between the net aggregate cash inflow and the net aggregate incomes?

A: The net cash flow of an association speaks to the entirety over some undefined time frame of the…

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: Which of the following are Cash Outflows from Investing?

A: The cash flow statement shows the cash inflow and cash outflow from the operating activities,…

Q: What are the characteristics of a strong statement of cashflows?

A: The Cash Flow Statement also referred to as statement of cash flows or funds flow statement. It is…

Q: How can we identify Cash Inflows and Outflows?

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: What does the statement of the cash flow report?

A: Statement of cash flow is one of the type of financial statements generally prepared by a company.

Q: Explain Cash Inflows and Outflows.

A: Cash flow statements are the statements that determine the inflow and outflow of cash from three…

Q: Define the term Equivalent Cash Value?

A: Cash: Cash is the money that is readily available in the form of currency. Since cash can be easily…

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: Lowering the discount rate on a cash flow will its present value.

A: Discount Rate: It is the rate at which the cash flows over the period are discounted.