Which of the following method is not based on concept of time value of money? A. Discounted payback period B. Accounting rate of return C. Profitability index D. Modified internal rate of return

Q: "The projected income statement method consists of taking the estimated income statement for the…

A: The income statement is the summary of income earned and expenses made in a certain period.…

Q: explain the relationship between accountir measures in the time value of money.

A: Time value of money: Even if the amount remains constant, the present value of a certain amount of…

Q: Does the payback-period analysis ignore differences in the timing of cash flows?

A: The time value of money (TVM) is the possibility that in view of its inevitable procuring influence,…

Q: The internal rate of return (IRR) is The same thing as the cost of capital. The discount rate that…

A: IRR is the internal rate of return. It is the rate at which net present value is equal to zero.…

Q: Which one of the following is a measure of long term solvency? A. Price earning ratio B. Profit…

A: Solvency refers to a firm's ability to meet its long term financial obligations or debt.

Q: a. what is the difference between the discount rate used for net present value and the internal rate…

A: Discount rate used for net present value is rate which investor want to earn from a project . It is…

Q: Explain the difference between net cash flow and operating cash flow. What causes these two numbers…

A: Net cash flow is the excess of cash inflows over the cash outflow or it is calculated by deducting…

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: Cash surplus and economic assumptions are components of a financial planning model. True or False

A: Future is uncertain and it contains various risk factors. Financial planning (FP) model is used to…

Q: r to pay un

A: Horizontal analysis :  Financial analysts use horizontal analysis, also known as trend analysis or…

Q: Explain the difference between: a) Cash Flows versus Accounting Estimates b) Static Payback Period…

A: When a company prepares financial statements or budgets it has to estimate various amounts. The…

Q: Which of the following decision criteria is the easiest to use and very popular among investors?…

A: The capital budgeting process uses different methods to analyze the projects. Each method has…

Q: excess earnings method, capitalized earnings approach, and discounted future earnings approach which…

A: ADJUSTED NET ASSETS METHODThe difference between the fair market value of the business assets and…

Q: what are the operational aspects of the discounted cash flow (DCF) method?

A: What Is Discounted Cash Flow (DCF)?  Limited income (DCF) is a valuation technique used to assess…

Q: 10

A: Cash flow refers to the total amount of cash and its equivalents that travel in and out of a company…

Q: True/false   Under IFRS, the discount rate should reflect risks for which future cash flow…

A: False  Refer step 2 for explanation

Q: In measuring the transaction price, explain the accountingfor (a) time value of money, and (b)…

A: Time value of money: It is a value of a particular amount of money at present that will be more than…

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

A: Definition: NPV is the difference between present value of cash flow and present value of cash…

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: time value of money to general situations where compounding is induced by growth, inflation, or…

A: Time Value of Money is one of the most important concepts of finance when it comes to the…

Q: deficit

A: If the total asset is smaller than total liabilities and equity on the balance sheet it means a…

Q: What is the fundamental argument behind using an opportunity cost as a discount factor in computing…

A: Opportunity cost: This term is very general and can be used on any normal day to day situation. For…

Q: 1.     _______________ is the process of determining the future value (FV) of a cash flow or a…

A: Future value is the value that is  calculated by compounding the present value at a given rate of…

Q: Cash Payback Period, Net Present Value Method,

A: Capital budgeting is an important tool for making decisions. It is used when a company opts for…

Q: Explain an example how to calculate accounting rate of return.

A: The accounting rate of return (ARR) is the percentage rate of return expected on investment or asset…

Q: yback method, the Accounting Rate of Return, and Discounted Cash Flow Model (Ne

A: Step 1 A huge budget is a method through which a company assesses possible substantial projects or…

Q: What refers to the cost of borrowing money or the amount earned by a unit principal per unit time?…

A: Solution Rate of Interest  The rate of interest is that the quantity a lender charges for the use of…

Q: What is the difference between a cash basis and an accrual basis measure of performance?

A: Cash Basis :- It is an Accounting Method where Revenue and Expense are identify at the time of…

Q: Which of the following would not result in an increase in both the current ratio and the acid test…

A: Current ratio is a financial ratio which helps to determine or analyse the liquidity in a company in…

Q: What are the disadvantages of only accounting for cash income and expenses in basic cost and return…

A: Cost and return analysis is also regarded as cost-benefit analysis which is carried out to make…

Q: Describe how volatile the payout ratios are based on earnings and cash flows.

A: Dividends payout ratio can be defined as the paying out the dividends to its shareholders on the…

Q: Which statement characterizes the time value of money concept?  A) The future value of a present…

A: Present value means worth of a dollar today Future value worth of a dollar in future.

Q: Value in use is a) © Discount rate b) © Present value of future cash if flows c) © Uncertainty of…

A: The monetary value of an asset or liability is referred to as its value. The most accurate…

Q: Based on your understanding of the fAactors that affect the cost of money, Identify which of the…

A: Higher inflation rate would lead to higher interest or nominal rate on the borrowed amount. This is…

Q: Which of the following methods does not adjust for the time value of money: A internal rate of…

A: Capital Budgeting is a financial analysis technique which is used to evaluate the profitability of…

Q: Describe the accrual accounting rate-of-return method. What are its main strengths and weaknesses?

A:

Q: period

A: Payback period is defined as the time taken to recover the cost of an investment. In other words it…

Q: What Is the term Actual-Dollar Analysis?

A: Dollar analysis is referred as the analysis of dollars by businesses and companies to compare the…

Q: Which of the following is NOT a way O Discounted Cash Flow -DCF Relative Valuation -…

A: There are many types of valuation techniques used for valuation of company and equity.

Q: Why, in most cases, accrual-basis net income provides a better measure of perfomance than net…

A: Under the accrual method of accounting, income is recorded on the income statement when it is…

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: can be helpful for managers to understand short-term cash obligations. A) Profitability ratios B)…

A: Ratio analysis is the measure of company performance, by measuring different ratios.