What does the short fall (below budgeted expense) in depreciation imply?

Q: Identify the cash flow series associated with production or service over thelife of the asset?

A: Definition: Cash inflows: The amount of cash received by a company from the operating, investing,…

Q: How is the revaluation surplus handled under the revaluation model?

A: The question is related to Revaluation model under IAS16 Property, Plant and Equipment. Under this…

Q: How to calculate net present value with capital expenditures.

A: Capital expenditure refers to the amount incurred by the busi9ness in purchasing fixed assets for…

Q: Explain why depreciation and interest should not be included as costs in a discounted cash flow…

A: The company makes several investments and an evaluation of investment is necessary. Therefore, the…

Q: Which of the following cash flows should not be considered when evaluating a project? Changes in…

A: Following cashflows should not be considered when evaluating a project-

Q: In construction of a capital budget, depreciation is used to compute cash flows.   However,…

A: Introduction: Depreciation is a firm’s tax deductible cost. It is each year that the capital asset…

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: Depreciation is a non-cash charge, it doesn’t affect the results of cash budget analysis.  True…

A: Depreciation is charged as reduction or decrease in value of fixed assets over the period of time.…

Q: Why is capital cost allowance used instead of depreciation expense in capital budgeting?

A: Capital cost allowance: is an annual deduction which can be claimed on depreciable asset while…

Q: What are the Effects of Inflation on Projects with Depreciable Assets?

A: Answer: A depreciable asset is nothing a property that gives more economic benefit over a tax period…

Q: What is the meaning of the time value of money? And why the financial manager uses it to decide on…

A: According to the concept of time value of money (TVM), the value of money available at the present…

Q: what is the effect of making changes to net present value calculations

A: Net Present Value = Present value of future cashflows - Initial Investment

Q: How can we determine the non-recurring costs such as capital expenditure and residual value at the…

A: Non-Recurring Costs: These are the cost that does not re-occur or occur again and again in the usual…

Q: What are the after effects (both short term and long term) of capitalizing the cable costs of…

A: Capital expenditures (CapEx) are cash outlays made by a company to purchase, improve, and maintain…

Q: Which of the following is a capital budgeting method? A. net present value B. inventory turnover…

A: Please find the answer to the above question below:

Q: Explain the Calculation of Net Income Attributable to New Project?

A: Answer: Companies regularly estimate the income after meeting all the expenses due to the new…

Q: Explain how capital budgeting handles a gain or loss on disposal

A: This question explains about capital budgeting handles a gain or loss on disposal:

Q: How is the present value of a lump sum determined?

A: Definition:   Present value: It refers to the current value of the whole amount that will be…

Q: Why does the economic-enterprise budget include depreciation or capital recovery and fixed costs?

A: A budget is the estimation of costs, expenses and incomes. Fixed costs are those costs which lasts…

Q: The accounting measure of a project's after-tax profit during a particular time period is known as…

A:

Q: True or false Amortization is the spreading out of a cost over a period of time  ?

A: Cost refers to the amount incurred by the entity over a particular item of expense, asset or…

Q: Explain how a gain or loss on disposal is handled in a capital-budgeting analysis.

A: Capital budgeting: Capital budgeting is a process by which the management can plan and evaluate the…

Q: In construction of a cash budget, depreciation is not used.  However, it is used to compute cash…

A: Depreciation is a tax-deductible expense of the company. It is the reduction of the fixed asset…

Q: Why are interest charges not deducted when a project’s cash flows are calculated for use in a…

A: Capital budgeting analysis is useful to know which projects are profitable and which are not. There…

Q: How is depreciation treated in the indirect method of estimating project cash flows? O Include the…

A: Under the indirect method of estimating project cash flows, adjustment of calculating cash flows…

Q: When might a reduction in operating expense as a percentage of sale denote a short term gain or the…

A: Operating expenses are those expenses which are related to the operations of the business. It…

Q: Which of the following phrases best describes the term " actual cash value"? a. market value b.…

A: Actual cash value is the actual amount at which the property could be sold and it is usually less…

Q: 6f

A: Opportunity cost: It reflects the profits that a person, financial specialist, or company loses in…

Q: What are the various costs that must be evaluated in a capital budgetingdecision?

A: Capital budgeting is the process of planning to make a decision to invest in long period investments…

Q: The estimated capitalized cost is $

A: A stream of equal cash flows paid or received periodically is termed as annuity. Annuity is either…

Q: How does depreciation enter into the calculation of operating cash inflows? Explain theu…

A: Depreciation allocates expenses related to assets over their useful life and it assists in reducing…

Q: Is after-tax cashflow still the cash inflow even if it is the sum of NOPAT and depreciation in the…

A: Cash Inflow of Project: The amount of money that enters a firm is referred to as cash influx. Sales,…

Q: Why does the interest in the original investment or the capital cost is included as a cost in the…

A: The annual worth method is the method in which all the cash flows are equally distributed across the…

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: Why isn’t accounting net income used in the net present value and internal rate of return methods of…

A:

Q: The process of finding the future value of a present sum is called: A.   Amortizing B.   Budgeting…

A: Future value: It can be defined as the value of an investment or any asset at a specified future…

Q: Explain why depreciation should not be included as a cost in a discounted cash flow (DCF) analysis…

A: Hi, Thanks for posting the question. As per the Q&A guidelines of Bartleby, suppose to answer…

Q: Why should companies use a project’s cash flows rather thanaccounting income when determining a…

A: Net Present Value is the difference between the current value of cash inflow and cash outflow for a…

Q: h expense

A: Depreciation definition : In simple words, depreciation refers to the expense of an organisation…