User Account

All Pages

Define cash flow accounting income

Assignment Help Finance Basics
Reference no: EM131101182

Define each of the following terms:

a. Cash flow; accounting income

b. Incremental cash flow; sunk cost; opportunity cost

c. Net operating working capital changes; salvage value

d. Real rate of return, rr, versus nominal rate of return, rn

e. Sensitivity analysis; scenario analysis; Monte Carlo simulation analysis

f. Risk-adjusted discount rate; project cost of capital

Reference no: EM131101182

Questions Cloud

What is the equipment''s after-tax net salvage value : Carter Air Lines is now in the terminal year of a project. The equipment originally cost $20 million, of which 80 percent has been depreciated. Carter can sell the used equipment today to another airline for $5 million, and its tax rate is 40 percent..
What is the project''s initial investment outlay : Johnson Industries is considering an expansion project. The necessary equipment could be purchased for $9 million, and the project would also require an initial $3 million investment in net operating working capital. The company's tax rate is 40 perc..
Why is it true, in general, that a failure to adjust : Why is it true, in general, that a failure to adjust expected cash flows for expected inflation biases the calculated NPV downward?
What is the basis for this emphasis on cash flows : Operating cash flows, rather than accounting profits, are listed in Table 11-4.What is the basis for this emphasis on cash flows as opposed to net income?
Define cash flow accounting income : Define each of the following terms: a. Cash flow; accounting income b. Incremental cash flow; sunk cost; opportunity cost c. Net operating working capital changes; salvage value d. Real rate of return, rr, versus nominal rate of return
What is its optimal economic life : Should the firm operate the truck until the end of its 5-year physical life, or, if not, what is its optimal economic life?Would the introduction of salvage values, in addition to operating cash flows, ever reduce the expected NPV and/or IRR of a pro..
Should the firm replace its old knitting machine : Assume that Filkins' cost of capital is 14 percent. Should the firm replace its old knitting machine, and, if so, which new machine should it use?
Which machine should the company use : After 4 years, the machine must be replaced. Machine B costs $15 million and realizes after-tax inflows of $3.5 million per year for 8 years, after which it must be replaced. Assume that machine prices are not expected to rise because inflation will ..
How much would the value of the company increase : the company's cost of capital is 12 percent. By how much would the value of the company increase if it accepted the better project (plane)?

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the ebdat breakeven point for 2011 in terms of

in 2010 jennifer jen liu and larry mestas founded jen and larrys frozen yogurt company which was based on the idea of

  Corporate debt and equity

Write down the main differences between corporate debt and equity? Why do some firms try to issue equity in guise of debt?

  Under what conditions would you use a t-test as opposed to

under what conditions would you use a t-test as opposed to a z-test? can you use the t-table to determine the critical

  The nominal exchange rate

Over a period of time, Alexis (a U.S. resident) notes that the nominal exchange rate (USD/EUR) has decreased by 3%, the price level in the Eurozone has increased by 5%, while the price level in the United States has increased by 6%. Compute the chang..

  How could you respond to your father to help him better

your father asked you why his investment in a publicly-traded stock is not paying him any dividends.he comments to you

  Gekko properties is considering purchasing teldar

gekko properties is considering purchasing teldar properties. gekkos analysts project that the merger will result in

  Think about high frequency trading benefits society

Do you think that High Frequency Trading benefits society in any meaningful way? (One page for only body paragraph, double space,News time roman, 12 front)

  Do the two governments have a similar allocation pattern

A comparison of the expenditure categories of the two budgets. Do the two governments have a similar allocation pattern

  The big mac index

In brief describe the history and purpose of the big Mac Index. where is it most expensive to buy big Mac? where is it least expensive to buy a big Mac?

  Characteristics of contingent liabilities

Contingent Liabilities must have the following criteria - select all that apply.

  Question regarding shares of common stock outstanding

Weber Corporations' profitability has improved recently and the board of directors believes that the company can pay $100 million in dividends next quarter. How much of a dividend can the company pay on its common stock?

  Analyze the walt disney company identify at least six of

analyze the walt disney company. identify at least six of their businesses. using the value chain and the industry

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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