The technique that recognizes the time value of money by discounting the after-tax cash flows for a project over its life to time period zero using the company's minimum desired rate of return is called the
Answer(s): A
The net present value method discounts future cash flows to the present value using some arbitrary rate of return, which is presumably the firm's cost of capital. The initial cost of the project is then deducted from the present value. If the present value of the future cash flows exceeds the cost, the investment is considered to be acceptable.
The technique that reflects the time value of money and is calculated by dividing the present value of the future net after- tax cash inflows that have been discounted at the desired cost of capital by the initial cash outlay for the investment is called the
Answer(s): C
The profitability index is another term for the excess present value index. It measures the ratio of the present value of future net cash inflows to the original investment. In organizations with unlimited capital funds, this index will produce no conflicts in the decision process. If capital rationing is necessary, the index will be an insufficient determinant. The capital available as well as the dollar amount of the net present value must both be considered.
The technique that measures the estimated performance of a capital investment by dividing the project's annual after4ax net income by the average investment cost is called the
Answer(s): D
The accounting rate of return is calculated by dividing the annual after-tax net income from a project by the book value of the investment in that project. The time value of money is ignored.
The technique that incorporates the time value of money by determining the compound interest rate of an investment such that the present value of the after-tax cash inflows over the life of the investment is equal to the initial investment is called the
The internal rate of return (IRR) is the discount rate at which the present value of the cash inflows equals the present values of the cash outflows (including the original investment). Thus, the NPV of the project is zero at the IRR. The IRR is also the maximum borrowing cost the firm can afford to pay for a specific project. The IRR is similar to the yield rate/effective rate quoted in the business media.
The technique that measures the number of years required for the after-tax cash flows to recover the initial investment in a project is called the
Answer(s): B
The usual payback formula divides the initial investment by the constant net annual cash The payback method is unsophisticated in that it ignores the time value of money, but it is widely used because of its simplicity and emphasis on recovery of the initial investment.
Share your comments for Financial CMA exam with other users:
is the answer to question 15 correct ? i feel like the answer should be b
its getting more technical
i think these questions are what i need.
helpful assessment
i am confused about the answers to the questions. do you know if the answers are correct?
hi, please make the dumps available for my upcoming examination.
good practice
so far it is really informative
hi i want it please please upload it
am preparing for exam ,just nice questions
please upload c_tadm_23 exam
can we get tdvan4 vantage data engineering pdf?
want to clear the exam.
could you please upload the dumps of sap c_sac_2302
asm management configuration is about storage
kool thumb up
just passed the az-500 exam this last friday. most of the questions in this exam dumps are in the exam. i bought the full version and noticed some of the questions which were answered wrong in the free version are all corrected in the full version. this site is good but i wish the had it in an interactive version like a test engine simulator.
i can practice for exam
please i need this exam.
i need the dump
i want it bad, even if cs6 maybe retired, i want to learn cs6
i hate comptia with all my heart with their "choose the best" answer format as an argument could be made on every question. they say "the "comptia way", lmao no this right here boys is the comptia way 100%. take it from someone whos failed this exam twice but can configure an entire complex network that these are the questions that are on the test 100% no questions asked. the pbqs are dead on! nice work
very good materials
thanks for your support.
iam impressed with the quality of these dumps. they questions and answers were easy to understand and the xengine app was very helpful to use.
not bad but you question database from isaca
awesome contents
answer to 134 is casb. while data loss prevention is the goal, in order to implement dlp in cloud applications you need to deploy a casb.
are these brain dumps sufficient enough to go write exam after practicing them? or does one need more material this wont be enough?
i did attend the required cources and i need to be sure that i am ready to take the exam, i would ask you please to share the questions, to be sure that i am fit to proceed with taking the exam.
why only give explanations on some, and not all questions and their respective answers?
refresh db knowledge
interested for sap certification
could you please upload practice questions for scr exam ?