Relevant cash flows Answer: d Diff: E . Which of the following statements is most correct? a. The rate of depreciation will often affect operating cash flows‚ even though depreciation is not a cash expense. b. Corporations should fully account for sunk costs when making investment decisions. c. Corporations should fully account for opportunity costs when making investment decisions. d. Statements a and c are correct. e. All of the statements above are correct. Relevant cash flows Answer:
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follow Howe Industries recently noted that‚ relative to the previous year‚ the company’s operating net cash flow increased‚ yet cash as reported on the balance sheet decreased. Which of the following factors could explain this situation? Answer The company cut its dividend. The company made a large investment in a profitable new plant. The company sold a division and received cash in return. The company issued new common stock. The company issued new long-term debt.
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statement? What does the balance sheet tell you about the company? Why is the balance sheet important? What business decisions could be made using the balance sheet? What does the statement of cash flows tell you about the company? What business decisions could be made using the statement of cash flows? What information is provided in the statements that will assist you in making these business decisions? What information is not provided that could assist in managerial decision making?
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MARGIN .......................................................................................3 COSTS .....................................................................................................................5 NET NEW FINANCING AND FREE CASH FLOW FOR FY2013................................ 7 III. RISK PROFILE ........................................................................................................9 RISK MEASURES...........................................................
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How much cash must be raised for the required investments? c. Short-term finance decision (working capital): How much short-term cash flow does company need to pay its bills. ( Describe capital structure. Capital structure is the mix of different securities used to finance a firm’s investments. ( How is value created? ( List three reasons why value creation is difficult. Value creation is difficult because it is not easy to observe cash flows directly.
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| 3. | | | What is the net present value of a project with the following cash flows if the required rate of return is 12 percent? | | | Student Response | Value | A. | -$1‚574.41 | | B. | -$1‚208.19 | | C. | -$842.12 | 100% | D. | $729.09 | | E. | $1‚311.16 | | | | | 4. | | | A project will produce cash inflows of $3‚200 a year for 4 years with a final cash inflow of $5‚700 in year 5. The project’s initial cost is $9‚500. What is the net
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of the above | | | Question 2 - Multiple Choice ID: 5129179 | - The correct answer has been circled. | | Question: Cash flows associated with annuities are considered to be | | | | An uneven cash flow stream | | A cash flow stream of the same amount (a constant cash flow stream) | | A mix of constant and uneven cash flow streams | | None of the above | | | Question 3 - Multiple Choice ID: 5129101 | Correct | | Question: A surplus budget
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Samantha Curtis FIN 101 February 23‚ 2015 1. Research some economics concepts regarding the value of labor. How do the business cycles and the health of the economy affect the value of your labor? In terms of supply and demand‚ what are the optimal conditions in which to sell your labor? How might further education increase your mobility in the labor market (the value of your labor)? a. When the value of labor is down‚ the economy is down. When the events from the world begin to change (recession)
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rules will always yield the same decision as long as two conditions are met: the project or investment’s cash flows are conventional and the project or investment is independent. If the initial cash flow is negative and all the subsequent cash flows are positive‚ the cash flows are said to be conventional. If at any point any of the 2nd or later cash flows are negative‚ meaning we have a cash outflow‚ the IRR will provide multiple rates of return which can make the decision of whether or not to choose
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foreign competition and labor cost. The analysis will focus on how the alternative chosen will help Guillermo increase profits over the next five years and lower all the costs involved in producing or distributing the furniture. The paper includes a Cash Flow Budget‚ including assumptions‚ which will be based on the projected sales and expense budget for the year and any capital investments the company projects over the next five years. Summary of Three Alternatives Guillermo is considering three
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