Projecting future cash flows involves risk

Assignment Help Financial Accounting
Reference no: EM13777547

Projecting future cash flows involves risk. Two of the following are ways to reduce risk in the analysis. Which of the following is not a way to reduce risk?

A. Do a sensitivity analysis

B. Use a higher discount rate for cash flow estimates with more risk

C. Use a lower discount rate for more distant cash flow estimates

Reference no: EM13777547

Questions Cloud

Measure the ability of a company to pay its liabilities : What financial ratios would you use to measure the ability of a company to pay its liabilities? What would each of the ratios that you identified tell you? Be specific.
How much is the contribution margin for the year : The Shoe division of Garrison Company has the following annual data. How much is the contribution margin for the year?
Two separate journal entries : Received a billing statement and issued check number 33332 for $155 to Hollman Freight Company, for freight charges incurred for delivery of merchandise items from Boot Hill Tools on December 2 (invoice number HL123).
What is the amount of their tax refund or taxes due : David and Lilly Fernandez have determined their tax liability on their joint tax return to be $1,680. They have made prepayments of $975 and also have a child tax credit of $1,000. What is the amount of their tax refund or taxes due?
Projecting future cash flows involves risk : Projecting future cash flows involves risk. Two of the following are ways to reduce risk in the analysis. Which of the following is not a way to reduce risk?
What is the direct labor quantity variance : What is the direct labor quantity variance in July?
Break morning corporation produces a product : Break morning Corporation produces a product that requires 1 hour of direct labor per unit. The allowance for rest periods is .2 hours; the allowance for machine setup is .1 hours. The hourly wage rate is $9 per hour, but a raise of $.25 per hour wil..
Coverage high deductible health plans : Sam is 54 years old, and Carol is 62 years old. Both were enrolled in self-only coverage High Deductible Health Plans (HDHPs) through their employers for the entire year of 2014. Both were enrolled in self-only coverage High Deductible Health Plans
Calculate the total present value of the cash flows : Price Mart is considering outsourcing its billing operations. A consultant estimates that outsourcing should result in after-tax cash savings of $9,000 the first year, $15,000 for the next two years, and $18,000 for the next two years. Interest is at..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Find ending finished-goods inventory cost

Find ending finished-goods inventory cost under absorption costing and evaluate the ending finished-goods inventory cost under variable costing?

  What are tax consequences to justin for these expenditure

legal and accounting fees to set the business up and $9,000 for staff training. What are the tax consequences to Justin for these expenditures when the restaurant opens in July? For Rachel?

  How many shares are held as treasury stock by coca-cola

What percentage of authorized shares was issued by Coca-Cola at December 31, 2010, and by PepsiCo at December 29, 2010? How many shares are held as treasury stock by Coca-Cola at December 31, 2010, and by PepsiCo at December 29, 2010?

  Lola industries purchased the following assets and

lola industries purchased the following assets and constructed a building as well. all of this was done during the

  What amount should be reported as noncontrolling interest

During the remainder of the year, Ramirez generates revenues of $600,000 and expenses of $360,000 and paid no dividends. On a December 31 consolidated balance sheet, what amount should be reported as noncontrolling interest?

  Operational description of anticipated operations

Which of the following managerial functions involves a detailed financial and operational description of anticipated operations?

  Cost of the land to be reported on the balance sheet

Fastball Delivery Company acquired an adjacent lot to construct a new warehouse, paying $41,000 and giving a short-term note for $319,000. Legal fees paid were $2,070, delinquent taxes assumed were $10,200, and fees paid to remove an old building fro..

  Using the finance or similarly named department link of a

using the finance or similarly named department link of a citys web site download either the citys entire comprehensive

  Fundamentals of accounting assignmentwrite up assets

fundamentals of accounting assignmentwrite up assets capital and liability accounts in the books of d. gough to record

  Illustrate what is amount and character of gain long

Illustrate what is the amount and character of the gain Longworth will recognize on the sale if the sale proceeds were decreased to $15,000?

  Question 1 what is the value of a share of preferred stock

question 1. what is the value of a share of preferred stock that pays a 9.50 dividend suppose k is 12.2. a 1000

  Short report on your findings to a prospective purchaser

Undertake an analysis of the company and prepare a short report on your findings to a prospective purchaser.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd