What condition regarding cash flows would cause more than oneIRR to exist?

Q: What are the two fundamental approaches to Probabilistic Cash Flow Analysis? What are its benefits?

A: The two fundamental approaches to the probabilistic cash flow analysis is shown as follows: Cash…

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

A: A payback period is the amount of time needed to earn back the cost of an investment. The length of…

Q: Distinguish between Cash flow versus Net Income?

A:

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

A:

Q: h flows meani

A: The amount of cash and the cash equivalent that the company receives or gives by the way of payment…

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 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 is the statement of cash flows, and what are some questions it answers?

A: A cash flow statement is the summary of cash flow which provides the details of the cash and cash…

Q: What do we mean by a cash flow diagram?

A: Cash is the most important asset for an organisation. The receipt and payment of cash during an…

Q: What are free cash flows?

A: Companies always estimate cash flows to know the financial conditions of the company because it is a…

Q: Given the following, what is free cash flow?

A: The free cash flow is calculated by deducting the capital expenditure from the cash flow from…

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 net cash flow?

A: Answer: Net cash flow is nothing but the difference between a company’s total cash inflows and total…

Q: How can we determine the net cash flow from operations?

A:

Q: What is free cash flow, and how is it calculated?

A: Free cash flow:Free cash flow is defined as an evaluation of financial performance of a company. It…

Q: In calculating any cash flow equivalence, what do we need to identify?

A: Cash equivalence helps investors to check the real worth of the funds. The investor will prefer…

Q: What are the three broad classes of cash flows. Why this classification is needed?

A: Cash Flow Statement - The cash Flow Statement is the Statement that represents the inflow and…

Q: What types of questions does the statement of cash flows answer?

A: Statement of Cash flow tells us about the cash transactions of a firm for a given time period. It…

Q: How can we separate cash flows from operating cash flow?

A:

Q: What is a common cash flow transaction/Give an example?

A: Cash flows are mainly of three types:  1. Operating 2. Investing and 3. Financing  Cash flows from…

Q: What is the significance of the FCF (Free Cash Flow) in the area of valuiation?

A: The cash flow to the business or equity after all debt and other obligations have been paid off is…

Q: Of what use is the statement of cash flows?

A:

Q: What is the purpose of cash flow analysis?

A: Cash flow Statement: It is prepared by the companies. It is a tool in the hands of users of…

Q: What are the three common natures of the cash flows?

A: Cash Flow Statement is a fundamental financial statement that renders valuable information regarding…

Q: Cash flows cannot be added together unless

A: The concept of time value of money states that value of money and hence value of cash flows changes…

Q: What are the two fundamental approaches of the Probabilistic Cash Flow Analysis?

A: Two fundamental approaches of probabilistic cash flow analysis are as follows: 1) Scenario analysis…

Q: ase determine the value of C that makes these two cash flows equivalent

A: We will have to use the concept of time value of money here. We need to determine the NPV of the two…

Q: What are the benefits of Relevant Cash-Flow Information?

A:

Q: What do the Cash flow diagrams represent?

A: They are utilized by accountants and engineers in the management to mirror the money exchanges that…

Q: WHAT DOES THE STATEMENT OF CASH FLOWS SHOW US?

A: Since cash play a vital role in making businees successful. The flow of cash need to be understood…

Q: What cash flows are associated with Descartes’ rule of signs and Norstrom’s criterion?

A: Cash flows series can be of two types i.e. non-conventional and conventional cash flow series. Non…

Q: What is meant by ‘Cash Flows’ ?

A: Cash Flow Statement: Cash Flow Statement is a fundamental financial statement that renders valuable…

Q: umespect Lu the sldlement of cash flows

A: Answer:   Option 2

Q: What is incremental cash flow?

A: Cash flow is the movement of cash in the company. While making an investment in any project, cash…

Q: .What is the operating cash flow (OCF)?

A: Cash Flows from Operations is one of the heads under the Cash Flow Statements. It seeks to find out…

Q: Give an example of the Cash-Flow Approach?

A: A cash flow hedge is defined as the transaction done to offset the risks from the variability of the…

Q: Differentiate between cash inflows and cash outflows?

A: Cash flows refer to the movements of cash into and out of a business, commonly categorized as…

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: The operating cash flow is?

A: Cash Flow Statement:- It is a statement prepared to know the liquidity available with the entity.…

Q: Describe the Probabilistic Cash Flow Analysis?

A: Answer: Cash flow applies to the overall sum of cash and cash equivalents that come into and out of…

Q: What is The Cash-Flow Statement? Give an example?

A: A statement that helps in providing detailed information regarding the cash inflow as well as the…

Q: Why must we convert cash flows to a common basis?

A: In creating a cash flow statements, it is important to translate accumulated net profits to a cash…

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: what is analytical tool in evaluating cash flows?

A: Cash flows are cash inflows and cash outflows of the business for the particular period of time.…

Q: Which category of the statement of cash flow is considered as the most important? Why?

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