What name is given to the time value of money technique that discounts the after-tax cash flows for a project over its life to time period zero using the company’s minimum desired rate of return? a. net present value method b. capital rationing methodc. payback method d. average rate of return method e. accounting rate of return method

Q: Brutus Inc estimates that the relevant incremental after-tax cash flows associated with a project…

A: As the name suggest, payback period is the time within which we will be able to recover our initial…

Q: Select all of the following that managers can use to evaluate capital invesments. (Select all that…

A: Evaluation techniques of capital investment are performed to arrive at a decision of investment in…

Q: Payback period is the time in which the initial cost of an investment is expected to be recovered…

A: The payback period is the time it takes to repay the cost of an investment or to reach the breakeven…

Q: Under which one of the capital budgeting, projects is the sum of all present values of all cash…

A: Capital Budgeting: Capital budgeting is a measurement of the project investment or any purchase of…

Q: Under the indirect method of estimating project cash flows, an increase in trade creditors in a…

A: Cash flow statement is divided into three activities i.e. cash flow from operating activities, cash…

Q: ve determined the profitability of a planned project by finding the present value of all the cash…

A: Present value of cash flow is related to the discount rate and the period of cash flow of the…

Q: The Modified Internal Rate of Return (MIRR) is based on : Reinvestment rate, financing rate, and the…

A: MIRR is a discounting rate that compares the present value of future cash inflows to zero year…

Q: The payback method measures: The profitability of an investment. The net cash inflow from an…

A: Pay back period is most popular method of capital budgeting decisions and is quite simple to use and…

Q: Why does capital budgeting rely on an analysis of cash flows rather than on net income? Base your…

A: Since, there are more than one question is posted at a time. The answer for first question is only…

Q: The internal rate of return method assumes that a project's cash flows are reinvested at the:

A: The internal rate of return is a financial analysis tool that is used to estimate the profitability…

Q: Describe the strengths and weeknesses of the following:: Cash payback period Adverage accounting…

A: As you have given multiple questions, first 3 will be answered. Please re-post the question for…

Q: which of the following should not be included in the cash flows for project analysis?…

A: Meaning of the given options: Opportunity cost : It is the benefit foregone from not selecting the…

Q: Which of the following cash flows are not considered in the calculation of the annual cash-flow for…

A: Proceeds from selling an old asset which is being replaced by a new asset It does not impact the…

Q: Which of the following should NOT be included in the cash flows for project analysis? Opportunity…

A: Explanation of the given option: 1. opportunity cost : It is the cost to be borne for not choosing…

Q: Which capital budgeting technique measures all expected future cash inflows and outflows as if they…

A: Based on the cost of capital the net present value method discounts the future cash flows (both cash…

Q: Prepare a cashflow forecast, Use investment appraisal techniques to calculate Net Present Value…

A: Net Present Value=(Present Value of Cash Inflows-Present Value of Cash Outflows)

Q: Which of the statements below is TRUE regarding capital budgeting? O A. Capital budgeting deals with…

A:

Q: Discuss the notions of conventional and nonconventional cash flows in capital budgeting. Which…

A: Conventional Cash Flows: These are cash flows in a project where the pattern of initial investment…

Q: A. Assuming cash flows arise evenly throughout the year, calculate the payback period of each of the…

A: Long-term investment decisions are known as capital budgeting. The company needs to allocate its…

Q: Adjusted present value technique is a technique that A) adjusts conventional present value for…

A: Adjusted present value technique is very common method used in the valuation of stock and companies…

Q: Of the capital budgeting techniques discussed, which works equally well with normal and non-normal…

A: The correct answer is “Net present value”.

Q: Cash Inflows generated by capital Investments Include all of the following except: Multiple Choice…

A: The cash inflow is the increase in the cash into the business with various activities.

Q: The comparison of the expected future streams of earnings from a project, with the immediate and…

A: Capital Budgeting: Evaluation of  investments and  huge amount of expenses in order to obtain the…

Q: The internal rate of return is the: discount rate that makes present value of cash inflows equal to…

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: Which of the following statements best describes the difference between the IRR method and the MIRR…

A: Note: As per the policy, we are supposed to solve one question at a time. Kindly repost the further…

Q: In the estimation of incremental cash flows for a new project, several costs and issues are…

A: ICF stands for Incremental cash flow is defined as the cash flow which is attained through company…

Q: Discuss the effect on Free Cash Flow in each of the following situations. Assume that all other…

A: ANSWER   d) Increase in time over which capitalized expenses are depreciated :-     As increase in…

Q: Define capital expenditures and provide examples of capital expenditures. 2. Cash flows for a…

A: As you have asked multiple questions, we will solve the first question as per policy of Bartleby.…

Q: Which of the following statements Is false with respect to the simple rate of return? Multiple…

A: Formula: Simple rate of return = Average profits / Initial investment

Q: Describe and explain the significance of each of the following: payback period, internal rate of…

A: The procedure a company uses to assess possible big projects or investments is called capital…

Q: Describe and explain the significance of each of the following: payback period, internal rate of…

A: Payback Period: A project’s payback period is the number of periods required for the project’s cash…

Q: In the payback method, depreciation is added back to net operating income when computing the annual…

A: The payback period alludes to the measure of time it takes to recoup the cost of an investment.…

Q: For a project that has an initial cash outflow followed by cash inflows, the profitability index…

A: Profitability Index The Profitability Index (PI) is the ratio between the present value of cash…

Q: From the attached please answer  a. Determine the initial outlay of the project. b. Calculate the…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: The periodic cash flows associated with an investment project include which of the following O…

A: solution concept periodic cash flow The term cash flow means the cash flow which arises every period…

Q: Examine the following statements. (i) Payback period method measure the true profitability of a…

A: Time value of money is a concept that helps in determining the value of future cash flows…

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.