Why do we use forecasted cash flows instead of forecasted accounting earnings in estimating the NPV of
Question:
Why do we use forecasted cash flows instead of forecasted accounting earnings in estimating the NPV of a project?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 64% (14 reviews)
Accounting earnings can differ from cash flows for a ...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
Question Posted:
Students also viewed these Corporate Finance questions
-
Why do we use forecasted incremental after-tax free cash flows instead of forecasted accounting earnings in estimating the NPV of a project?
-
Why do we focus on cash flows instead of profits when evaluating proposed capital budgeting projects?
-
Why do we use an after tax figure for cost of debt but not for cost of equity?
-
Using the 526 observations on workers in a certain dataset, we include educ (years of education), exper (years of labor market experience) and tenure (years with the current employer) in regression...
-
Consider a dynamic RAM that must be given a refresh cycle 64 times per ms. Each refresh operation requires 150 ns; a memory cycle requires 250 ns. What percentage of the memory's total operating time...
-
Explain what is meant by "health psychology." Be sure to include factors that distinguish health psychology from other areas of the field of psychology, such as the mind-body connection. Describe at...
-
For each of the following sets of data, (1) calculate the mean of the scores \(\left(\mathrm{X}^{-} ight),(2)\) calculate the deviation of each score from the mean \(\mathrm{X}-\mathrm{X}^{-}\), and...
-
Clason corp. manufactures radiation- shielding glass panels. Suppose Clason is considering spending the following amounts on a new TQM program: Strength- testing one item from each batch of...
-
You have a computer system where a customer wants the device to be changed from being a magnetic hard drive to an SSD using a M.2 interface. The desktop computer does not have a M.2 slot. Is what the...
-
There are different ways to combine features of the Breusch-Pagan and White tests for heteroskedasticity. One possibility not covered in the text is to run the regression on xi1, xi2, ...., xik, 2i,...
-
Benezra Enterprises, Inc. has a plant capacity that can produce 4,000 units annually. Its predicted operations for the year are: Sales (2,000 units at $50 each) $100,000 Manufacturing costs: Variable...
-
Archers Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12 million. The investment will consist of $2...
-
Iraq's Ministry of Defense (IMOD) and Wye Oak Technology entered into a contract on August 16, 2004, for the refurbishment and disposal of Iraqi military equipment. The contract required Wye Oak to...
-
Assume that you were one of the recipients of New Venture Fitness Drinks concept statement. What type of feedback would you have given the company about the viability of its product idea?
-
Why is it necessary for a business plan to be realistic? How will investors typically react if they think a business plan is based on estimates and predictions rather than on careful thinking and...
-
What are e-inroices and e-parments:
-
On May 1, 2018, Anthony was in an automobile accident while on his way to work. Following doctor's advice, Anthony stayed home for six months to recover from his injuries. While at home, Anthony...
-
The Segway PT is a two-wheeled, self-balancing transportation device that consists primarily of a set of tall handlebars on top of two disc-like wheels. There are no chains or visible mechanical...
-
What is the structural difference between thymine and uracil?
-
If the amplifier indicated by the box input impedance of oo, which of the following statements are true ? has an open loop gain as well as Feedback factor (\beta = 1/ R_1\) The feedback is voltage...
-
You wish to know the melting temperature of aluminum at 100 bar. You fi nd that at atmospheric pressure, Al melts at 933.45 K and the enthalpy of fusion is: Heat capacity data are given by: Take the...
-
Presented below are a number of facts related to Weller, Inc. Assume that no mention of these facts was made in the financial statements and the related notes. Instructions Assume that you are the...
-
Wayne Cooper has some questions regarding the theoretical framework in which GAAP is set. He knows that the FASB and other predecessor organizations have attempted to develop a conceptual framework...
-
Homer Winslow and Jane Alexander are discussing various aspects of the FASBs concepts statement on the objective of financial reporting. Homer indicates that this pronouncement provides little, if...
-
s Machine-hours required to support estimated production Fixed manufacturing overhead cost Variable manufacturing overhead cost per machine-hour Required: 1. Compute the plantwide predetermined...
-
How do visionary leaders navigate the complexities of organizational dynamics to cultivate a culture of innovation and adaptability ? Explain
-
Finnish Corporation manufactures custom molds for use in the extrusion industry. The company allocates manufacturing overhead based on machine hours. Selected data for costs incurred for Job 532 are...
Study smarter with the SolutionInn App