A company is considering two mutually exclusive projects with the following projected cash flows:The company has a required rate of return of 8%. If the company's objective is to maximize shareholder wealth, which one of the following is the most valid reason for selecting one of the projects?
Answer(s): A
Project A has a single cash inflow, calculated as the present value of a single payment in 4 years discounted at 8%:The net present value of Project A is thus greater than that of Project B.
Depreciation is incorporated explicitly in the discounted cash flow analysis of an investment proposal because it
Answer(s): C
Depreciation is a noncash expense that is deductible for federal income tax purposes. Hence, it directly reduces the cash outlay for income taxes and is explicitly incorporated in the capital budgeting model.
Henderson, Inc. has purchased a new fleet of trucks to deliver its merchandise. The trucks have a useful life of 8 years and cost a total of $500.000. Henderson expects its net increase in after-tax cash flow to be $150,000 in Year 1, $175,000 in Year 2, $125,000 in Year 3, and $100,000 in each of the remaining years. Ignoring the time value of money, how long will it take Henderson to recover the amount of investment?
The payback period for an investment, ignoring the time value of money, can be found by accumulating each year's net cash flows until the initial investment is recovered. The amount accumulated after 3 years is $450,000. Thus, 50% ofYear4 cash flows is needed to recover the initial investment. The payback period is 3.5 years.
Henderson, Inc. has purchased a new fleet of trucks to deliver its merchandise. The trucks have a useful life of 8 years and cost a total of $500,000. Henderson expects its net increase in after4ax cash flow to be $150,000 in Year 1, $175,000 in Year 2, $125,000 in Year 3, and $100,000 in each of the remaining years. What is the payback reciprocal for Henderson's fleet of trucks?
The payback reciprocal for an investment is found by dividing 1 by the payback time. The pay back time for this investment is 3.Syears, and the pay back reciprocal is 1 divided by3.5, or29%.
Henderson, Inc. has purchased a new fleet of trucks to deliver its merchandise. The trucks have a useful life of 8 years and cost a total of $500.000. Henderson expects its net increase in after-tax cash flow to be $150,000 in Year 1, $175,000 in Year 2, $125,000 in Year 3, and $100,000 in each of the remaining years. If the net cash flow is $ 130,000 a year, what is the payback time for Henderson's fleet of trucks?
payback period for an investment, ignoring the time value of money, can be found by accumulating each year's net cash flows until the initial investment is recovered. Therefore, dividing the $500,000 initial investment by the annual $130,000 inflow gives a payback time of 3.85 years.
Share your comments for Financial CMA exam with other users:
good training
very useful
yes need this exam dumps
these questions are a great eye opener
thank you for providing these questions and answers. they helped me pass my exam. you guys are great.
good knowledge
answer 10 should be a because only a new project will be created & the organization is the same.
can you please upload the dump again
is it legit questions from sap certifications ?
question 16 should be b (changing the connector settings on the monitor) pc and monitor were powered on. the lights on the pc are on indicating power. the monitor is showing an error text indicating that it is receiving power too. this is a clear sign of having the wrong input selected on the monitor. thus, the "connector setting" needs to be switched from hdmi to display port on the monitor so it receives the signal from the pc, or the other way around (display port to hdmi).
q 10. ans is d (in the target org: open deployment settings, click edit next to the source org. select allow inbound changes and save
i purchased this exam dumps from another website with way more questions but they were all invalid and outdate. this exam dumps was right to the point and all from recent exam. it was a hard pass.
it was a good experience and i got 90% in the 200-901 exam.
hi please upload this
please upload it
really need this dump. can you please help.
really good and covers many areas explaining the answer.
yes, can you please upload the exam?
how many questions are there in these dumps?
hi team, please upload this , i need it.
question 14 - run terraform import: this is the recommended best practice for bringing manually created or destroyed resources under terraform management. you use terraform import to associate an existing resource with a terraform resource configuration. this ensures that terraform is aware of the resource, and you can subsequently manage it with terraform.
please upload dump. thanks in advance.
great great
answer 16 should be b your organizational policies require you to use virtual machines directly
the question are kind of tricky of you didnt get the hnag on it.
can anyone tell me if this is for rhel8 or rhel9?
good content
pdb and cdb are critical to the database
till 104 questions are free, lets see how it helps me in my exam today.
question # 56, answer is true not false.
i would be requiring dumps to prepare for certification exam
very helpful
control file is the heart of rman backup