What is the difference between future value and present value? Which approach is generally preferred by financial managers? Why?

Q: What is the connection between Business Valuation and Financing Options ?

A: Business valuation:  The economic worth of a firm or business unit is determined via business…

Q: What’s the risk of competition on financial markets and institutions profitability?

A: Competitive risk or Risk of Competition is the force that will hinder the organization in achieving…

Q: what is risk and return in the context of financial decision making?

A: Risk and return are two very important concept used in any financial decision making. Two financial…

Q: Consider the advantages and disadvantages of using the accounting rate of return as an investing…

A: This question explains about  the advantages and disadvantages of using the accounting rate of…

Q: Which is more important from a finance perspective-net income or operating cash flow? What is the…

A: Net income is calculated in the income statement whereas and operating cash flows are calculated in…

Q: What's the Impact of Expansion on future financial position?

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: Cashflow vs. net income: Which strategy is more appropriate?

A: instruction: The direct and indirect routes to a cash flow statement are both found there.

Q: What are the benefits and corresponding risks of Financial Investment?

A: Financial Investments are investments that are made with the expectation to receive future financial…

Q: Why are the net present value and the internal rate of return models superior to the payback period…

A: The net present value and internal rate of return techniques are superior to the payback method…

Q: Are the financial projections realistic and healthy?

A: Estimating things before the real cost and revenue incurred is known as financial estimation.…

Q: Which is risk in the context of financial decision making and performance? Does performance…

A: Risk in the perspective of financial decision making and performance differs as the company faces…

Q: How do earnings and cash are useful assets with future earnings potential? Does investors tend to…

A: Earnings and cash flows are two important aspects for a company. Earnings and positive cash flows…

Q: how present value is useful in economic decision making

A: Present value (PV) is the current value of a future sum of money or a stream of cash flows, given a…

Q: What is the compensation for price risk in finance? How do they arise and what issues arise due to…

A: Price risk: Price risk can be defined as the risk that price of a security may reduce. This risk is…

Q: How behavorial bias affect investment behavior?

A: Behavioral bias is the belief by the investors that unknowingly affects the investors investment…

Q: What methods could be used in profit planning?

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What is risk, and how does it affect decisions about investment?

A: Risk and return are related to each other while making investment.

Q: Discuss how the Accounting Rate of Return as an investment appraisal method is better than the Net…

A: Accounting ROR or ARR and Net Present Value(NPV) are tools that are used to make selection among…

Q: What is/are the importance of identifying the gaps to make financial projection feasible?

A: A gap analysis is a method for comparing present performance to desired, expected performance. This…

Q: What is the difference between business risk and financial risk?

A: Risk Analysis: The risk analysis is defined as the process of recognizing the potential problems…

Q: What is Competitiveness and how it affects financial market. Identify the risks that may arise.

A: The search for long-term competitive advantage is an important part of all business activity – one…

Q: What is the difference between-1 accounting and Finance? answer this ?question with suitable example…

A: The difference between accounting and finance is as follows:

Q: What is Trend Analysis in Financial Analysis?

A: Trend analysis: A trend analysis is determined by comparing the change or percentage change, which…

Q: b. Discuss why financial analysts prefer the CAPM model over other evaluation models?

A: CAPM is an abbreviation used for Capital Asset Pricing model which is used by investors or portfolio…

Q: What theories can define the relationship between financial literacy and investment decision?

A: Behavioral finance is the study of the influence of external factors and the psychology on the…

Q: What is behavioral finance? What are the implications of behavioral finance formarket efficiency?

A: Behavioral finance is the study of the psychological influences of an investor that affects the…

Q: What are some possible financial decisions in which using the Future Value (FV) formula might be…

A: The concept of time value of money states that the money received today is worth more than that the…

Q: Explain the difference between deterministic and probabilistic financial planning models.

A:

Q: Explain how differential weight to losses and gains effect investment decisions?

A: Prospect Theory assigns differential weight to losses and gains for making investment decisions.

Q: What benefits do financial markets offers?

A: Financial market refers to the place where trading of various financial securities takes place.…

Q: What is risk? Why must risk as well as return be considered by the financial manager who is…

A: Risk is associated with every business it is one of the important functions of the management to…

Q: What is the risk in the context of financial decision making and performance?

A: Financial decision making: Financial decision making denotes to decision making concerning financial…

Q: why financial planning is a long-term process rather than short term one?

A: Financial planning is very long term process and it can not be done on the basis of short term.

Q: Rational investors prefer to receive money today rather than the same amount of money in the future.…

A: The Time Value of Money is an important concept for investors because a dollar on hand today is…

Q: What are the implications of behavioral finance?

A: Behavioral finance is a study which combines the psychological, social and traditional factors. It…

Q: What are some qualitative factors that analysts should consider when evaluating acompany’s likely…

A: Qualitative factors are the factors which are non quantifiable for the examination of operations and…

Q: What is the implication of technical analysis to behavioral finance

A: Technical analysis is a search for trends or patterns in market prices of securities which are then…

Q: Which is more important from a finance perspective - net income or operating cash flow? Why? What is…

A:

Q: What’s the impact of risk on financial markets and institutions profitability?

A: Financial market is the place where securities like stocks and bonds along with other financial…

Q: What are the importance of Financial Market?

A: Financial Market: It is the market where  financial securities and derivatives  are traded by people…

Q: Which method does not consider the time value of money? Choose the correct. A. Net present value…

A: Net Present Value or NPV is a technique which determines the net present value of the project and it…

Liquidity Risk Exposure

Answer: c