Is it worth the effort to estimate daily project cash flows?  Would doing so be helpful in the investment analysis? How would the results be negatively or positively affected?

Q: Is the net-investment test the only way to accurately predict projectborrowing?

A: Net investment refers to the total amount of money that a company invests in capital assets which is…

Q: The importance of cash flow management when evaluating proposals for capital expenditure?

A: All investments in capital assets are expected to earn a return, which is evaluated by comparing the…

Q: ve determined the profitability of a planned project by finding the present value of all the cash…

A: Present value of cash flow is related to the discount rate and the period of cash flow of the…

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: Why the payback method is often considered inferior to discounted cash flow in capital investment…

A: Payback period is capital budgeting technique which tells how much time will it take for Ann…

Q: Is it always necessary to adjust projects’ cash flows when different projects haveunequal lives?…

A: EAA or Equivalent annual annuity is a methodology utilized in capital budgeting to pick between…

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: Critically assess how a failed capital project may also shape the future strategy of investment…

A: Capital projects are nothing but a long-term capital-intensive initiative aimed at expanding on,…

Q: We discussed the use of sensitivity analysis and simulation analysis in the context of estimating…

A: Cash flow can be inwards or outwards. Cash flow includes the fallow of cash only, it does not…

Q: Which of the following should NOT be included in the cash flows for project analysis? Opportunity…

A: Explanation of the given option: 1. opportunity cost : It is the cost to be borne for not choosing…

Q: Why does a company evaluate both the money allocated to a project and the time allocated to the…

A: "Since you have asked mutiple question we will be solving first question for you,If you want any…

Q: What would be a business example that shows how depreciation and accelerated depreciation can affect…

A: Depreciation- is a method used by a business or company to write off an asset's value over it's…

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: Taggart Inc. is considering a project that has the following cash flow data. What is the project's…

A: Project's Payback means the time when project's cash inflows cover the initial investments.  Payback…

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: The best model to analyze the project financially is cash flow. Select one: O True O False

A: To evaluate a project for its acceptability, we need to analyze its profit generating ability.…

Q: Which one of these statements is correct? Accountants record sales and expenses after the related…

A: Evaluation of Investment: there are some methods of capital budgeting to evaluate the investment in…

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: Are the revenues from the goods and services produced in the new facility, the expected future cash…

A: The question is based on the concept of calculation and components of cash inflows from new long…

Q: Why is the net-investment test the only way to accurately predict projectborrowing? Explain with an…

A: Definition: Net- investment measures the company's assets and investment like property, software,…

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: 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: What are the shortcomings of the internal rate of return criterion? How do you make an investment…

A: Internal rate of return is the discount rate at which the present value of the future cash flow and…

Q: Should financing costs be included as an incremental cash flow in capital budgeting analysis?…

A: Financing ost will be reflective of all such cost which are incurred due to financing of a…

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

A: Cash flows refer to the amount of net cash and cash equivalents that flow in and out of the…

Q: What is the value added by the design of the financing package? How does it alter both the return…

A: The question is based on the concept o the financial package, which is explained as a complete…

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

A: True rate of return means real rate of return on investment. It is the actual return earned on an…

Q: How can the Cash flow be considered to evaluate the economic meritof any investment project?

A: Investment projects are usually capital expenditure that includes different cash flows. Capital…

Q: How would you relate the financial statement analysis tools with project evaluation techniques…

A: Financial statement analysis is the type of analysis, which are used by external as well as internal…

Q: How do we develop the project cash flows, after taxes, over the life of the project?

A: Cash flows of the project include both cash inflows and cash outflows. To develop cash flows…

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: What is a true indicator of the project's profitability?

A: Answer: Capital budgeting is the whole project investment process and the decision of whether it…

Q: Discuss the following statement. A manager believes that changes in NWC can be ignored from your…

A: Net working capital means difference between the current assets and current liabilities.

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: Discuss how a project's risk can be incorporated into capital budgeting analysis.

A: Answer: Capital budgeting is a process to determine potential investment after evaluating the…

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…

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.