Which of the following does not assign a value to a business opportunity using time-value measurement tools? Group of answer choices A. internal rate of return (IRR) method B. net present value (NPV) C. discounted cash flow model D. payback period method

Q: Which of the following method is not based on concept of time value of money? A. Discounted payback…

A: Time value of money is based on the concept, that money you have today worth more than it in the…

Q: Which of the following is not a correct statement O a. Profit maximization is vague conceptually.…

A: The profit maximization concept explains that the company should undertake such actions, investments…

Q: Why should the managers make investment decisions on the basis of cashflows rather than profits?

A: Net income: The bottom line of an income statement which is the result of excess earnings from…

Q: Which of the following statements is CORRECT?   a. One drawback of EVA as a performance measure is…

A: The question is related to Economic Value Added. The Economic Value Added (EVA) EVA as a residual…

Q: Which of the following is not an advantage of the average rate of return method? a.includes the…

A: Average rate of return is a method of calculating return on the asset

Q: As a Businessman and Entrepreneur, which do you think is more important between Return On Asset…

A: ROA is the return on assets and ROI is the return on investment.

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: __________ focus more on underlying determinants of future profitability than the past price…

A: The investor predicts the future price movements of the stocks using past patterns. Different…

Q: Define the following terms: inventory conversion period, average collection period, and payables…

A: All the transactions of the company that are happened during the year will be recorded first in the…

Q: Value One category of capital investment evaluation methods does not use present value. The primary…

A: Cash Pay Back Method and Accounting Rate of Return are two Traditional methods of capital budgeting.…

Q: d. Explain why NPV is considered technically superior to Payback and Accounting Rate of Return (ARR)…

A: There are various capital budgeting methods that can be used to assess or evaluate various…

Q: Which of the following statements is false? (You may select more than one answer.)a. The total-cost…

A: Capital budgeting refers to the process by which long-term investment proposals are evaluated based…

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: Which one of the following statements about book value and market value is correct? Group of answer…

A: Book values are based on the historical performance of the company. But market value gives the…

Q: One method for calculating enterprise value includes the present value of which of the following…

A: Enterprise value : total value of the company that shows how much will it cost to buy the firm.

Q: What is the limitation of Traditional approach of Financial Management? اخترأحد الخيارات a. All of…

A: Solution-                                          Limitations of traditional Approach in financial…

Q: Which of the following methods does not consider the investment’s profitability? a. ARR b. Payback…

A:

Q: Which of the following is not an approach to replacement analysis? Solve, a. Cash flow approach b.…

A: Replacement analysis is the study of organizing, reasoning and implementation of successful…

Q: why net present value is considered to be superior to internal rate of return as an investment…

A: Investment- The purchase of an asset in order to generate income or capital gain is referred to as…

Q: Methods that ignore the time value of money in capital investment appraisal include which of the…

A: Net present value – Net present value is the difference between present value of cash inflows of…

Q: All of the followings are True when the net present value method is used to choose between two…

A: Net present value is the excess of present value of cash flows over cash outflows or initial…

Q: Which of the following statements is False regarding the payback period method: DA Use as a tool in…

A: Statement -D is false.As payback period method is Non- discounting cash flow criteria…

Q: is the difference between the gross present value of the benefits of that action and the amount of…

A: Net present value is the difference between the present value of future cash inflows and cash…

Q: The payback rule is generally most useful when:

A: The payback period is the time taken to recover the money spent on the project. According to the…

Q: Please answer the following questions 1. _________________ is the discounted net future cash…

A: Profitability Index= PV of cash inflows/Initial cash outlay where, PV= Present Value Balanced…

Q: True or False Investment bankers and other valuation professionals often utilize relative valuation…

A: Long term investments are the investment or assets that are beneficial for the firm for a number of…

Q: What is a discounted cash flow approach to fair market value estimation, and what are some of the…

A:

Q: (c) Why is net present value considered to be a superior method of evaluating the cash flows from a…

A: The concepts of capital budgeting tools can be used here to answer the questions. There are…

Q: Which of the following is NOT an advantage of the valuation multiple method as compared to the…

A: Valuation multiples are financial assessment tools that compare different organizations by…

Q: The following is a disadvantage of ARR investment appraisal method (select one):   A. multiple or…

A: Accounting rate of return is a method that is used for evaluating the investment proposal. It is…

Q: “Explain the reasons why the net present value (NPV) method of investment appraisal is likely to be…

A: The Net Present Value (NPV) is a company's financial tool used to estimate the viability of…

Q: A disadvantage of using the payback period to compare investment alternatives is that it a. Ignores…

A: Investment decision: Investment decision can be referred to as capital budgeting. It involves…

Q: A realized return is the rate of return actually earned on an investment. Group of answer choices…

A: Return: Return is defined as the money attained or lost on an investment through certain time…

Q: True or false   DCF Approach Model examines the price of "similar" assets in relation to a common…

A: 1. DCF Approach Model examines the price of "similar" assets in relation to a common variable, such…

Q: s it important to identify what costs will be eliminated in the conduct of finan

A: Turnaround recovery ways are a variety of measures that corporations use to get over a amount of a…

Q: What capital budgeting rule is a simple but imperfect attempt to solve the capital rationing…

A: Answer: Option c.  Payback rule   Explanation: Payback rule is a very simple method which is used to…

Q: You plan to analyze the value of a potential investment by calculating the sum of the present values…

A: The present value of cash flows is computed by discounting the future cash flows with the relative…

Q: why is knowledge of the money market important for carrying out value maximizing working capital…

A: Introduction: For this question, the importance of working capital which helps to manage the short…

Q: What is the difference between future value and present value? Which approach is generally preferred…

A: Present value and future value are considered while taking investment decisions. The future values…

Q: The third step for making a capital investment decision is to establish baseline criteria for…

A: In order to establish baseline criteria for alternatives for making capital budgeting decisions, the…

Q: When considering restructuring operations, MNC's will need to study cash flow sensitivity related to…

A: The question is related to Capital Budgeting. The MNC's need to study sensitivity related to…

Q: Discuss the two variables that must be considered whether you are using the present value of cash…

A: The discounted cash flow approach and the relative valuation approach are both used to value any…

Q: This can occur when a selection among mutually exclusive alternatives is based wrongly on…

A: Answer-    Ranking errors can occur when a selection among mutually exclusive alternatives is based…

Q: Which of the following is NOT a valuation model that is based on discounting cash flows? Select one:…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: True or False   Relative Valuation links an asset's value to its inherent qualities, such as its…

A: Relative Valuation links an asset's value to its inherent qualities, such as its ability to produce…