What is the essence of the discounted cash flow methods?

Q: What is alternative cash flow measures?

A: Cash flow refers to the amount of cash that moves in and out of the business because of its…

Q: What is Internal Rate of Return - Variable Cash Flows with Reversion?  Please provide examples.

A: The internal rate of return is the one of the discounted techniques of capital budgeting which is…

Q: Describe the Replacement Analysis Using the Cash-Flow approach?

A: The cash flow approach clearly reflects the real cash-flow effects for each replacement option as it…

Q: Describe about the cash flow risk.

A: Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a…

Q: Describe the discounted cash flow techniques?

A: Following are the discounted cash flow techniques: Net present value (NPV) is the contrast between…

Q: Describe the procedure of Estimating Risky Cash Flows?

A: Risky cash flow means the future cash flow which falls short of the expectations. This shortage may…

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 alternative way of preparing the Cash Flow Statement?

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

Q: what are usefulness and weakness of discounted cash flow method?

A: Discounted Cashflow Method is the Method in which we compare Initial Project cost with expected…

Q: What is Internal Rate of Return - All Cash Deal?  Please provide examples

A: Internal Rate of Return (IRR)IRR is the annualized effective compounded rate or return that can be…

Q: List the Interest formulas for single Cash Flows?

A: So now that we have the general formula which describes how a single cash flow moves through time:…

Q: What are the discounted cash flow techniques?

A: Discounted cash flow (DCF) is a valuation method used to estimate the value of an investment based…

Q: Explain the term Cash Equivalency?

A: It is an evaluation procedure by which the cost of comparable properties selling at various funding…

Q: What are the interest formulas for single cash flows?

A: Present Value: The value of today’s amount to be paid or received in the future at a compound…

Q: Give some examples of Discounted cash flow?

A: Discounted cash flow: It's a time value method to calculate the project or investment value  using…

Q: How do I calculate free cash flow?

A: Introduction: FCF or Free Cash Flow is a proportion of the amount of money a business creates in the…

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 would discounted cash flow be applied to fair vaue valuations?

A: Valuation of a company means to determine the intrinsic value of a company or the value which the…

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: Define the term the cumulative cash flow?

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: Define the term cash outflows.

A: Cash flow is the net amount of cash and cash-equivalents being transferred into and out of a…

Q: What is irregular cash flow stream?

A: Cash Flow has a flow concept. There can either be cash inflow or cash outflow. Generally, for…

Q: What is the process of solving a cash flow for an unknown interest rate?

A: Time Value of Money: According to the concept of TVM, the company always interested to know the PV…

Q: What is Equilant cash value?

A: Cash and cash equivalents alludes to the detail on the balance sheet that reports the estimation of…

Q: What is difference between The earnings multiplier and Discounted cash flow model (DCF)? kindly…

A: Valuation is the process of determining fair value of an asset or a firm. There are various methods…

Q: What are the most important parts of the cash flow statement?

A: Since organizations can produce and utilize cash in a few distinct manners, the statement of cash…

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: What are the strenghts and weaknesses of the discount cash flow methods?

A: discounted cash flow methods are used to calculate to find the future cash inflow discount into its…

Q: why discounted cash flow methods are preferred to the more traditional techniques of payback and…

A: Before knowing the reason of preference for the use of any method, let us see the basic description…

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: Describe the development of discounted cash flow techniques (DCFs)?

A: The question is based on the concept of discounted cash flow techniques , which is generally used in…

Q: What are the characteristics of a strong statement of cashflows?

A: The Cash Flow Statement also referred to as statement of cash flows or funds flow statement. It is…

Q: What is the incremental cash flows from switching credit policies?

A: Incremental cash flow is the extra cash flow a business will generate by investment in a new project…

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: How can we identify Cash Inflows and Outflows?

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

Q: What is free cash flow? Why is it the most important measure of cash flow?

A: Free cashflow can be defined as the cashflow that remains in balance after the company has fulfilled…

Q: What does the statement of the cash flow report?

A: Statement of cash flow is one of the type of financial statements generally prepared by a company.

Q: Explain Cash Inflows and Outflows.

A: Cash flow statements are the statements that determine the inflow and outflow of cash from three…

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: How do you calculate free cash flow?

A: A free cash flow is the cash flow free from any kind of claim from the stakeholders above you in the…

Q: Briefly explain the concept of discounted-cash-flow analysis. What are the two common methods of…

A:

Q: The discount rate to be used for calculating the present value of a stream of cash flow should be…

A: Discount rate is defined as rate of the return, which helps in the computation of the future's DCF…

Q: What are the strenghts and weaknesses of the Discounted Cash Flow methods

A: Cash flow is the movement of money from a particular investment. Discounted cash flows mean…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.