About project cash flow estimation

Assignment Help Financial Management
Reference no: EM13976308

Which of the following statements about project cash flow estimation is false?

a) Opportunity costs should be considered.

b) The effects on a business’s other projects should be included.

c) Sunk costs should be included.

d) Strategic value should be considered.

e) Inflation effects should be considered.

Reference no: EM13976308

Questions Cloud

Calculate the degree of operating leverage : PrepCo, Inc. is looking to find information on its breakeven point and associated measurements. The following is the data that PrepCo will use in its analysis: Variable operating costs of $15 per unit. Calculate the units needs for PrepCo’s operating..
Working capital cash flow cycle : Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year were $200,000 (all on credit), and it earned a net profit of 4%. Calculate Strickler's cash conversion cycle. Calc..
A firm has had the indicated earnings per share : A firm has had the indicated earnings per share over the last three years. If the firm's dividend policy was based on a constant payout ratio of 50 percent, determine the annual dividend for each year.
Calculate coefficient of variation for each of alternatives : You have been given the expected return data shown in the first table on 3 assets- F, G and H over the period 2016-2019. Calculate the expected return over the 4 year period for each of the alternatives. Calculate the standard deviation of returns ov..
About project cash flow estimation : Which of the following statements about project cash flow estimation is false?
What is the amount of the equal annual installments : Calculate the amount today that is equivalent to $150 at the end of year 1, $450 at the end of year 2, and $300 at the end of year 3, given a discount rate of 10%. What is the amount of the equal annual installments for a 10-year, $10,000 loan with a..
Annually compounded rate of interest has bank been paying : Determine how much $1,000 deposited in a savings account paying 8% compounded annually will be worth after 5 years. At an effective interest rate of 12%, a single sum invested today will double itself in approximately: Your bank balance is exactly $1..
About the accounts payable : A chain of appliance stores, APP Corporation, purchases inventory with a net price of $200,000 each day. The company purchases the inventory under the credit terms of 2/15, net 30. APP always takes the discount, but takes the full 15 days to pay its ..
About capital investment analysis : Which of the following statements about capital investment analysis is most correct?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the payback period in this case

A florist is buying a number of motorcycles to expand its delivery service. These will cost $87,000, but are expected to increase profits by $3000 per month over the next four years. What is the payback period in this case?

  Annual standard deviation of returns on stock

The annual standard deviation of returns on Stock A’s equity is 31% and the correlation coefficient of these returns, with those on the market index (S&P 500 index), is 0.82. Comparable numbers of Stock B are 34% and 0.64. What can you say about Stoc..

  Compare the percentage gains and losses

Stock in Cheezy-Poofs Manufacturing is currently priced at $50 per share. A call option with a $50 strike and 90 days to maturity is quoted at $2.50. Compare the percentage gains and losses from a $12,500 investment in the stock versus the option in ..

  What is the current market price of these bonds

Western Enterprises’ bonds have 10 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon rate is 9 percent. The bonds have a yield to maturity of 7 percent. What is the current market price of these..

  Whats the current price of the bond

A bond matures in ten years and is currently selling for $1,125. The bond pay interest annually, has a par value of $1,000, and a yield to maturity of 10.75%. What’s the bond’s current yield?  If the yield to maturity is 8% and the bond pays interest..

  Freddiemac reports that the average rate

FreddieMac reports that the average rate on a 30-year fixed rate mortgage is 3.92% as of January 2012. This is down from 4.76% in January 2011 and 5.03% in January 2010. If you have a $230,000, 5%, 30-year mortgage, how much interest will you save if..

  What is likely to happen to swedish interest rate and why

Assume that the 1-year interest rate in the US is 2% and the 1-year interest rate in Sweden is 4%. You have no additional information on the spot or the forward rate. What is likely to happen to the USD / SKR spot rate and why? What is likely to happ..

  What is the present value of this investment

An investment pays you $20,000 at the end of this year, and $10,000 at the end of each of the four following years. What is the present value (PV) of this investment, given that the interest rate is 4% per year?

  Calculate countrys bilateral trade balance

What entries are used to calculate a country's bilateral trade balance? A. its unemployment and inflation rates B. its per capita income and imports C. its exports and per capita income D. its exports to and imports from another country

  Valuing preferred stock

{valuing preferred stock } a firm has an issue of preferred stock outstanding that pays a $3.5 dividend every year in perpetuity if this issue currently sells for $85 per share what is the required return

  What is the bonds yield to maturity-current yield

You just purchased a corporate bond that matures in 5 years, has an 8% coupon, and has a current yield of 8.21%. What is the bond's yield to maturity? A corporate bond that matures in 7 years sells today for $1,020 and has a yield to maturity of 10.5..

  Best exemplifies a free trade agreement

Which of the following best exemplifies a free trade agreement?

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