Discounted payback period Study guides, Class notes & Summaries

Discounted Cash Flow - is the total value of each year's expected cash inflow in TODAY'S DOLLARS NPV is calculated by: - subtracting the initial investment from the total of the expected cash inflows stated in today's dollars. ex. if initial is higher than cash flows so NPV is less than zero and project should be rejected Negotiating involves... - obtaining mutually acceptable agreements with individuals or groups Leadership involves... - imparting a vision and motivating others to achie...

Shareholders only receive money after what is done? correct answer: suppliers have been paid wages to workers have been paid. interest to bondholders have been paid. taxes have been paid. Capital Budgeting correct answer: The process of determining exactly which assets to invest in and how much to invest; also called capital expenditure decision or capital investment decision. Future Value (FV) correct answer: the amount to which a cash flow or series of cash flows will grow ov...

Discounted Cash Flow is the total value of each year's expected cash inflow in TODAY'S DOLLARS NPV is calculated by: subtracting the initial investment from the total of the expected cash inflows stated in today's dollars. ex. if initial is higher than cash flows so NPV is less than zero and project should be rejected Negotiating involves... obtaining mutually acceptable agreements with individuals or groups Leadership involves... imparting a vision and motivating ...

UARK FINN 3043 Final Exam – Sirmans Qs&As Capital Budgeting - ANS-The process of evaluating and selecting long-term investments that are consistent with the firm's goal of maximizing owner's wealth Capital Expenditure - ANS-An outlay of funds by the firm that is expected to produce benefits over a period of time greater than 1 year Operating Expenditure - ANS-An outlay of funds by the firm resulting in benefits received within 1 year Capital Budgeting Process - ANS-Five distinct but ...

WGU C928 - WGU IT Finance (Formulas) 100% Correct Accounting Equation Assets = Liabilities+Equity Ratio of Liabilities to Stockholders' Equity Ratio of Liabilities to Stockholders' Equity = Total Liabilities / Total Stockholders' Equity Working Capital Working Capital = Current Assets - Current Liabilities Current Ratio Current Ratio = Current Assets / Current Liabilities Ratio of Free Cash Flow to Sales Ratio of Free Cash Flow to Sales = Free Cash Flow / Sales Quick Ratio Quick Ratio = ...

Fin 202 Chap 10 Questions and Answers | Latest Update | 2024/2025 | 100% Pass A construction firm is evaluating two value-adding projects. The first project deals with building access roads to a new terminal at the local airport. The second project is to build a parking garage on a piece of land that the firm owns adjacent to the airport. If both projects are positive- NPV projects, then the firm should A) accept both projects because they are independent projects. B) select the hig...

What is the first step when calculating the crossover rate? To calculate the cash flow differences between each project. The Discounted Payback Period Rule states that a company will accept a project if: The calculated payback is less than a pre-specified number of years. The Internal Rate of Return (IRR) represents which of the following: The discount rate that makes the net present value equal to zero. What does the Modified Internal Rate of Return (MIRR) assume? The MIRR assumes th...

A Guide to Project Management Body of Knowledge (PMBOK Guide) - ANSWERSThe project management standard developed by the Project Management Institute. Benefit measurement methods - ANSWERSA type of decision model that compares the benefits obtained from a variety of new project requests by evaluating them using the same criteria and comparing the results. Co-located - ANSWERSWhen team members work together at the same physical location Constrained optimization models - ANSWERSDecision mo...

Five Key Principals of Capital Budgeting - ANSWER-1) Decisions are based on incremental cash flows. Sunk costs are not considered. 2) Cash flows are based on opportunity cost 3) Timing of the cash flows is important 4) Cash flows are analyzed on an after-tax basis 5) Financing costs are reflected in the required rate of return, not in the incremental cash flows Payback Period - ANSWER-Number of years it takes to recover the initial cost of the project. Ignores time value of money and any ...

a project has a discounted payback period that is equal to the required payback period. Given this which of the following statements must be true?The projec tmust also be acceptable under the payback rule AND The project must have a profitability index that is equal to or greater than 1 a project has a net present value of zero. Which one of the following best describes this project?The project's cash inflows equal its cash outflows in current dollar terms. A project has a required payb...