When Projects Require Only Operating and Investing Activities?

Q: Define the term elements associated with project financing?

A: Answer: Project financing is nothing but a long term, zero or minimal recourse funding option…

Q: Compare and contrast the differing methods that can be used to account for risk within the context…

A: Investment project is referred to as the set of an inter-dependent tasks as well as activities,…

Q: Why is it important to match your funding with economic life of corresponding asset?

A: The use of assets economic life matching with funding can be an integral tool for financial…

Q: What is project financing? What are its advantages and disadvantages?

A: Project financing: It is a type of subsidizing for the most part foundation overwhelming,…

Q: what is the meaning, purpose and formula of External Financing Need?

A: Finance Finance refers to the provision of money at the time it is required. Every business needs…

Q: Define the term investment pool?

A: Answer: Investment pools are noting but an institutional entities that are pooled investment…

Q: What are the unique risks of land development projects from the developer’s and lender’s points of…

A: The risks of land development projects from developer’s point of view: Planning risk: The ability…

Q: Should capital budgeting decisions be made solely on the basis ofa project’s NPV, with no regard to…

A: Net present value is a method of capital budgeting. In this technique, the current estimation of…

Q: Investment projects fall within two types. What are they?

A: An investment project is a series of cash inflows and outpourings, normally beginning with a money…

Q: What are Sources of Funding?

A: The process that involves determining the fund requirement, identifying and selecting the optimum…

Q: Differentiate between the Loan and Project Cash Flows?

A: Loan Cash Flows:   It refers to the borrowing of unsecured nature that is used by small businesses…

Q: Should capital budgeting decisions be made solely on the basis of project’s NPV?

A: Net present value is the method of capital budgeting, under this method the present value of future…

Q: How can a developer create value over and above their project cost when attempting to obtain…

A: Financing refers to a process of raising funds for business activities, and making purchases or…

Q: Who is normally responsible for the authorization of investment activities? Why is the authorization…

A: Investment Decisions: Decisions undertaken by a management to determine where the company resources…

Q: Why is risk incorporated into capital budgeting and how is it incorporated into the process of…

A: Capital budgeting is the process of evaluating different investment projects that require capital…

Q: Why should the financial manager include opportunity cost but ignore sunk costs when evaluating a…

A: Capital investment is defined as an amount, which used to get invested in the corporation for…

Q: The available capital funds are to be carefully allocated among competing projects by careful…

A: The company should invest the capital funds in such a manner that provides the maximum profit to the…

Q: Describe the method of Investment Decision for a Nonsimple Project?

A: In a simple investment, cash flows change sign only one time. For example, negative cash flow in the…

Q: Illustrate the conceptual basis upon which the practice of financial project analysis is built?

A: Net present value It is a concept through which the financial project viability can be analyzed. The…

Q: What is project financing?

A: Project financing is an opportunity to finance long-term, nil, or restricted capital accessible to a…

Q: Is it ever appropriate or acceptable to use the payback method of evaluating capital investment…

A: Introduction: Capital budgeting is an investment criterion or decision making mechanism for…

Q: What is funding strategy?

A: Introduction: Strategy usually entails setting targets and objectives, defining steps to meet the…

Q: Capital investment decisions are not affected by:

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: When and under what conditions the cross over rate will be used will be an essential consideration…

A: Introduction: The process through which the corporation decides on the project investments that will…

Q: Describe the Investment Decision for a Nonsimple Project?

A: Answer: In case of simple investment, changes to the cash flow sign can only be made once. For…

Q: ) What are the factors affecting the discount rate used in project valuation?

A: Discount rate also called as Weighted average cost of capital is used for discounting future cash…

Q: What do we mean by the economic life of a project?

A: The time span for which an asset or a project generates profits for the owner is known as the…

Q: How is the Rate of return is an intuitively familiar and understandable measure of project?

A: Company enters into diversification once it reaches a profit level. Expanding the business is part…

Q: How can the Cash flow be considered to evaluate the economic meritof any investment project?

A: Investment projects are usually capital expenditure that includes different cash flows. Capital…

Q: How would you relate the financial statement analysis tools with project evaluation techniques…

A: Financial statement analysis is the type of analysis, which are used by external as well as internal…

Q: Discuss the factors that must be considered in choosing the means of financing a project

A: Project financing is a means of obtaining funds for industrial projects, long-term infrastructure,…

Q: What type of projects does the Payback method favor?

A: Payback method: It implies to a method of evaluating investment projects by computing the time, it…

Q: Financially, what is the economic worth of outbidding thecompetitors for a project?

A: Companies often exploit opportunities in the market because they will create positive NPV for the…

Q: If a firm can structure a project such that expenditures can be madein stages rather than all at the…

A: When expenditure of any project are made in different stages rather than at the beginning then the…

Q: Should capital budgeting decisions be made solely on the basis of a project’s NPV?Explain.

A: Capital budgeting decisions are based on various factors in which NPV is one of the factors which…

Q: hich project should the company pursue? Why?

A: NPV = Present value of cashinflows - Present value of cash outlay.

Q: How can we determine the required capital investment for an investment project?

A: Estimation of the capital investment is required because this is the foremost decision while…

Q: How do you overcome the challenges posed by unequal lives of the projects being comparedand when…

A: Capital Budgeting is the evaluating techniques which evaluates the profitability of the long term…

Q: Define the term elements associated with investment activities?

A: In a simple language investment is like investing money to get a return out of it or to get more…

Q: Explain Financing Project Development?

A: Introduction  Project finance refers to the funding of long-term projects, such as public…

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.