Answer:
A cash budget is very important, especially for smaller companies. It allows a company to establish the amount of credit that it can extend to customers without having problems with liquidity. A cash budget helps avoid a shortage of cash during periods in which a company encounters a high number of expenses.
Explanation:
Answer:
A)semistrong
Explanation:
As regards to finance, the efficient-market hypothesis known as "EMH"
gives assertion that financial markets can be regards as "informationally efficient. ”
The EMH three forms which are:
1)weak
2) semi-strong
3)strong
it gives evaluation of the influence that MNPI(material Nonpublic Information ) has on market prices. It explains that when markets are efficient then the current prices reflect all information.
Semi-strong-form give a claim that prices gives reflection of all publicly available information, it also claims that
that prices instantly change to to gives a reflection of new public information.
The weak-form gives a claim that prices that is on traded assets such as bonds or stock gives reflection of
all publicly available information in the past . It should be noted that If you believe in the semistrong form of the EMH, you believe that stock prices reflect all relevant information including historical stock prices and current public information about the firm, but not information that is available only to insiders.
Yes the npv should always follow as it represents
Answer:
the breakeven cash inflow for the project is $131474
Explanation:
given data
cost of capital = 10 percent
initial investment = $1,000,000
useful life = 15 year
to find out
the breakeven cash inflow for the project
solution
first we consider here annual cash inflows that is = x
now break even point is the one at which the net present value of the project = 0
so we can say that here
Present value of cash inflows - Present value of cash outflows = 0 .................1
here we know Present value of cash inflows = x × PVAF ( 10%,15 years)
Present value of cash inflows = x × 7.6060
put value in equation 1 we get
x × 7.6060 - $1,000,000 = 0
solve and we get x
x = 
x = $131474
so the breakeven cash inflow for the project is $131474
