Concept of Marginal Cash Flows. Yes, in case the average revenue of business is less than the average cost then the business is at loss which means it is unable to cover its costs. And this statement is true when …

In case the average revenue of business is less than the average cost then the business is at loss Read more »

What is forecasting risk? In general, would the degree of forecasting risk be greater for a new product or a cost-cutting proposals? Why? Forecasting risk is the risk that a poor decision is made because of errors in projected cash …

What is forecasting risk? In general, would the degree of forecasting risk be greater for a new product or a cost-cutting proposals? Why? Read more »

The Ziggy Trim and Cut Company can purchase equipment on sale for $4,300. The asset has a three-year life, will produce a cash flow of $1,200 in the first and second year, and $3,000 in the third year. The interest …

The Ziggy Trim and Cut Company can purchase equipment on sale for $4,300. The asset has a three-year life, will produce a cash flow of $1,200 in the first and second year, and $3,000 in the third year Read more »

If you invest $100,000 today at 12% per year over the next 15 years, what is the most you can spend in equal amounts out of the fund each year over that time. I think it is the case similar …

If you invest $100,000 today at 12% per year over the next 15 years, what is the most you can spend in equal amounts out of the fund each year over that time. Read more »

A firm has days’ sales in inventory of 105 days, an average collection period of 35 days, and takes 42 days, on average, to pay its accounts payable. Taken together, what do these three figures imply about the firm’s operations …

A firm has days’ sales in inventory of 105 days, an average collection period of 35 days, and takes 42 days, on average, to pay its accounts payable. Read more »

Interpret, in words, what cash flow of the firm represents by discussing operating cash flow, changes in net working capital, and additions to fixed assets.             Cash flow of firm represents everything like net working capital changes, operating cash flow, …

Interpret, in words, what cash flow of the firm represents by discussing operating cash flow Read more »