The project incremental cash flows comprise of changes

Assignment Help Financial Management
Reference no: EM132014488

1. The capital budgeting decisions for a project requires analysis of all the following except

A- It’s Future Cash Flows

B- The Degree of uncertainty associated with their future cash flows

C-The value of its future estimates of its capital appreciation and functional needs

D- The value of its future cash flows with their uncertainty

2. The project’s incremental cash flows comprise of changes in operating cash flows, which one:

A- Changes in revenues and long-term debts

B- Change in revenues and expenses

C- Change in revenue and tax consideration

D- Changes in operating cash flows and changes in investment cash flows

3. The project’s A and B with the same risk level but different cash flow . Which of the two projects will be accepted.

A) Project A with higher IRR than B

B) Project B with shorter Payback period than A

C) Project B with higher NPV than A

D) Project A with longer Payback period but more cash flows than B

Reference no: EM132014488

Questions Cloud

What is the present value of these payments : What is the present value of these payments if the discount rate is 7 percent? What rate of return will Mr. Templeton need in order to achieve this goal?
Company break even on its investment in new manager : what month will the company break even on its investment in the new manager?
The argentine inflation rate is expected : Assume that U.S. and Argentine investors require a real return of 2 percent. the Argentine inflation rate is expected to be about ____ the U.S. inflation rate,
Calculations in evaluating investments in long-term assets : We incorporate risk into our calculations in evaluating investments in long-term assets as.
The project incremental cash flows comprise of changes : The project’s incremental cash flows comprise of changes in operating cash flows, which one:
Preparing company statement of cash flows : In the course of preparing a company's statement of cash flows, What will the net effect of these items be in the statement of cash flows?
Calculate project profitability index : Suppose you calculate a Project’s profitability index to be 1.4, what does it mean?
What is the value of the merger : What is the value of ABC following the merger?
What is the value of the option to wait : What is the value of the option to wait?

Reviews

Write a Review

Financial Management Questions & Answers

  Futures contract on three-month treasury bills

You shorted a futures contract on three-month Treasury bills. The quoted futures price when you shorted is 98.05. You hold the futures contract to maturity date and deliver the three-month Treasury bill. How much will you receive in exchange of the T..

  What is required return for the overall stock market

EXPECTED AND REQUIRED RATES OF RETURN Assume that the risk-free rate is 3.5% and market risk premium is 4%. What is required return for the overall stock market

  What are the advantages and disadvantages of using credit

Explain the three types of credit. Under what conditions might a consumer find each type useful?- What are the advantages and disadvantages of using credit?

  What are the projects annual cash flows during years

You are evaluating a proposal to buy a new machine. The base price is $108,000, and shipping and installation costs would add another $12,500. The machine is depreciated using prime cost method (3 years useful life), and it would be sold after 3 year..

  The break-even point for the entire company is closest

Gilpatric Corporation produces and sells two products. In the most recent month, The break-even point for the entire company is closest to:

  Singleton company issued twentey-year bonds

Six years ago the Singleton Company issued 20-year bonds with a 14% annual coupon rate at their $1 ,000 par value.

  Emergency-major medical expenses-home flood-car accident

Emergency (major medical expenses, home flood, car accident) Include a description of their personal impact on you – your current financial situation, what adjustments you would have to make, how long it will take to pay for each of these, and specif..

  Calculate the free cash flow

Ford Motor Company, Inc. Determine Ford’s consolidated free cash flow. Make a prediction as to what the company’s stock price would be in three (3) months. Review analysts’ estimates and predictions for the past year. 1. Calculate the free cash flow

  Should you purchase this stock from her

You sister is trying to sell you a stock with a current market price of $28. Should you purchase this stock from her?

  The initial costs for net working capital

What amount should be included in the initial costs for net working capital?

  What cash flows are relevant to the value of stockwhy the

what cash flows are relevant to the value of stock?why the fed was initially established?suppose a firms stock has a

  What is the NAV of the fund

A mutual fund has 600 shares of General Electric, currently trading at $18, and 600 shares of Microsoft, Inc., currently trading at $35. The fund has 1,500 shares outstanding. What is the NAV of the fund?  Assume that the price of General Electric sh..

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