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horsena [70]
3 years ago
9

Which of the following situations suggests the acceptance of an investment​ proposal? A. The cash inflows are lesser than the in

itial investment. B. The IRR is lower than the hurdle rate. C. The investment will have a residual value. D. The present value of the net cash inflows exceeds the initial investment.
Business
1 answer:
Kryger [21]3 years ago
6 0
<h3>Hello there!</h3>

Your question asks which situation suggests the acceptance of an investment proposal.

<h3>Answer: D). The present value of the net cash inflows exceeds the initial investment</h3>

The reason why "D). The present value of the net cash inflows exceeds the initial investment" would be  the correct answer is because this would show investors that they should invest in a group or company.

An investment proposal is a way of "motivating" / "attract" / or "persuade" investors to invest in a company. When investors look for businesses to invest in, they want to see that the business will make more than what they invested in. And answer choice "D" clearly shows that.

When it says "The present value of the net cash inflows exceeds the initial investment", it means that the net cash flow that the business is receiving is exceeding, or higher, than the investment that was put, meaning that the people who invested in it will make profit off of the investment. And that's what investors want, profit or a surplus that is higher than the price they've invested for.

<h3>I hope this helps!</h3><h3>Best regards,</h3><h3>MasterInvestor</h3>
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Net cash flow from a transaction equals the difference between cash received and cash disbursed in the transaction.
Ipatiy [6.2K]

Answer:

True

Explanation:

Imagine you're selling lemonade. It costs you $2 for a lemon, and you can make 5 glasses from it.

You sell each glass for $1.

At the end of the day, your profit per lemon = the total value of lemonade sold - the total cost of lemons. If you only sell 1 lemon worth of lemonade, it will be $5-$2 = $3 profit.

Net cash flow means the same as "profit".

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3 years ago
Fernstrom Corporation has two divisions: East and West. Data from the most recent month appear below: East West Sales $ 330,000
GenaCL600 [577]

Answer:

The company’s overall net operating income  would be $52,140

Explanation:

If the all divisions of the company are operates at break even level the overall net operating income of the company would be zero . because at break even level the sales value is equals to total variable cost plus total fixed cost if the company incurring any addition fixed cost then the over all net operating income will show loss of additional fixed incurred.  The answer for the given question is the overall net operating income of the company would be ($52,140).

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3 years ago
A landlord will usually check your credit report before renting an apartment to you.
Vlada [557]
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3 years ago
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Bear Tracks, Inc., has current assets of $2,280, net fixed assets of $10,400, current liabilities of $1,405, and long-term debt
Vera_Pavlovna [14]

Answer: $7185

Explanation: Shareholders equity refers to the amount of funds that are collected by the company by selling their ownership rights in the market to the general investors.

As per the subject matter of accounts, every asset that is owned by an organisation is either financed by the available funds or some liability is taken to buy it. This could be illustrated as follows :-

assets =  shareholders equity + liabilities

Putting the values into equation we get :-

$2280 + $ 10,400 = $1,405 + $4090 + shareholders equity

therefore :-

shareholders equity = $7185

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3 years ago
Cash flows from activities include both inflows and outflows of cash from the external funding of a business. True or false?.
user100 [1]

True.

Cash flows from activities include both inflows and outflows of cash from the external funding of a business.

<h3>Cash Flow from Financing Activities: What is it? </h3>
  • The net amount of financing a business generates during a specific time period is called cash flow from financing activities.
  • The issuing and repayment of equities, the payment of dividends, the issuance and repayment of debt, and capital lease obligations are all examples of financial activity.

<h3>What Are the Different Types of Cash Flows? </h3>
  • Money coming into a business is known as cash inflow, and it may come through sales, investments, or financing.
  • The reverse of a cash outflow is a cash inflow, which is money entering a business.

<h3>What three different forms of cash flows are there?</h3>

To assess the liquidity and solvency of the company, organizations should monitor and analyze three different types of cash flow:

  • cash flow from operating operations
  • cash flow from investing activities
  • cash flow from financing activities.

The cash flow statement of a corporation includes all three.

  • Items like dividends and interest payments are excluded.
  • stock, debt, or alternative sources of funding.
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To learn more about financing activities visit:

brainly.com/question/16377227

#SPJ4

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