What determines the value of an economic asset

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Essay Questions:

1- If interest expense is a cash disbursement, why is it excluded from Operating Cash Flow?

2- Since depreciation is a non-cash expense, does it have an affect NPV and IRR? Explain.

3- What determines the value of an economic asset?

4- Why would investors demand a return on an investment that has no risk?

5- Why does the present value of a future cash flow decline as the required return increases?

6- Explain why historical information should be useless in predicting the stock market.

Reference no: EM131558741

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