What three aspects of cash flows affect the valueof any investment?

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 are the aims of the cash flow statement?

A: Cash flow statement is a statement which records inflow & outflow of cash from the three main…

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: What are the benefits of The Cash-Flow Statement?

A: Statement of Cash Flows: Statement of cash flows is a financial statement that reports the sources…

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 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 maturity period required for an investment to qualify under the definitions of a cash…

A: Cash and cash equivalents correspond to just the line item on the balance sheet that lists the value…

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

A: IRR (Internal Rate of Return) is the interest rate where net present value of a project equals to…

Q: What is the importance of statement of cash flows?

A: Cash flow is the flow of money that flows in and out of a business. It can be expressed in terms of…

Q: What is the impact of working capital on the cash flow statement?

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

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

A:

Q: List the [ive patterns of cash flow?

A: The Movement of cash in or from the organization plays an important role in various decisions making…

Q: How is working capital handled in the calculation of cash flows from a capital investment? Is it…

A: Working capital or net working capital is equals to firm’s current assets minus current liabilities,…

Q: About cash flows versus net income. Which should we use in present value calculations and why?

A: Net present value is the value of an investment in today’s worth. It is a capital budgeting…

Q: What is the net cash provided by investing activities?

A: Introduction Cash flow statement: Cash flow statement is the financial statement which reports cash…

Q: To qualify as cash equivalents, the investment must be:

A: Cash Equivalent: Cash equivalent is highly liquid, short term investments, which could be held by a…

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 is the significance of the FCF (Free Cash Flow) in the area of valuation?

A: Cash flows refer to the cash expenditure and cash receipt of the business over a specific time…

Q: On what does the interest paid on a cash investment depend?

A: Cash investment An investment (short-term) under which one makes a deposit the cash and also…

Q: What does the statement of cash flows report?

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: How can we develop the techniques for establishing cash flow equivalence with compound-interest…

A: Answer: To measure the equivalence of the sequence of compound interest factors used to extract the…

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: Describe the Investment-Credit Decision—A Cash Flow Perspective.

A: Answer: Every lender and borrower shall have their own conditions based on their needs and wishes.…

Q: An investment property is considered to generate cash flows that are?

A: Investment property can be defined as the property consisting of land or building which is not…

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: 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: Define the positive cash flows?

A: The positive cash flow is the state of the organization wherein money inflows to an enterprise over…

Q: What is the difference between the net aggregate cash inflow and the net aggregate incomes?

A: The net cash flow of an association speaks to the entirety over some undefined time frame of the…

Q: Which of the following are Cash Outflows from Investing?

A: The cash flow statement shows the cash inflow and cash outflow from the operating activities,…

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: What should a firm’s goal be regarding the cash conversion cycle?  Explain

A: The cash conversion cycle measures the number of days between the company making a deposit to buy…

Q: How do we measure and compare various cash flows?

A: Cash flows are described as those movements of cash which result from the various activities of the…

Q: Define the term Equivalent Cash Value?

A: Cash: Cash is the money that is readily available in the form of currency. Since cash can be easily…

Q: Illustrate the process of computing the equivalent present worth when all cash flows are given in…

A: The process to compute the equivalent present worth are: Identify the interest rate Identify the…

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…