,Match the following terms with the appropriate definition.Effective yield or interest rateMonetary liabilityCompound interestPresent ValueFuture value of a single amountA.Fixed obligation to pay an amount in cash.B.The rate at which money will actually grow.C.Interest accumulates on interest.D.Current worth of future cash flows.E.The money to which an amount invested will grow over time.

What are: the payback method, the Accounting Rate of Return, and Discounted Cash Flow Model (Net Present Value and Internal Rate of Return)

In terms of future value (FV) which of the following considerations is correct? Select one: O A. Consider only future cash flows as relevant factors O B. Consider only past cash flows as relevant factors O C. Consider past sales revenues and cost of sales as relevant factors O D. Consider future gross profit and net profits as relevant factors

Can you give some explanation of why Amortization Expense is included as a source of cash in a cash flow statement?

The statement of cash flows reports the cash proceeds from issuing a bond as a cash flow from Select one: a. Investing activities. b. Asset activities. c. Operating activities. d. Financing activities. The primary advantage of making investment decisions based on the net present value method, instead of the payback period, is that the net present value method Select one: a. Considers depreciation expense as part of the investment’s cash flows. b. Is easier to compute then the payback period. c. Conforms to generally accepted accounting principles. d. Factors the time value of money in its calculations. A firm with an investment opportunity whose internal rate of return was lower than its cost of capital would Select one: a. Use the payback period method to make the investment decision. b. Possibly make the investment. c. Make the investment. d. Not make the investment.

Consider the “Cash Flow Available for Debt Repayment” metric in the Cash Flow Projections and Debt Schedule of an LBO Model. The statements below list similarities and differences between this metric and the “Free Cash Flow” metric, as it is normally defined and used in 3-statement models.Which of these statements list(s) a similarity or difference that is INCORRECT?a. Both figures deduct the Net Interest Expense but exclude Optional Principal Repayments on New Debt used to fund the LBO.b. Free Cash Flow is a component of Cash Flow Available for Debt Repayment, along with an addition for the Beginning Cash, a deduction for the Minimum Cash, and other possible adjustments.c. Free Cash Flow is capital structure-neutral, but Cash Flow Available for Debt Repayment is not because it changes throughout the LBO holding period as the company repays its Debt balance.d. The Change in Debt each year should equal the Cash Flow Available for Debt Repayment each year, but it will never equal the…

Why are the net present value and internal rate of return considered discounted cash flow methods?

A centerpiece of any study of finance is "valuation." A simple function, "V=l/R," can be used to describe an asset's "value." What does the "R" in that expression stand for? O a future cash flow O a current cash flow O a market-determined discount rate O a variable income measure O a measure of probability

. How does one determine the value of any assetwhose value is based on expected future cash flows?

NPV measures a. the change in firm value b. the profitability of an investment c. the change in wealth d. the present value of the future net cash flows from the investment e. all of the above