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What is the current value of future cash flows discounted at the appropriate discount rate?
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When is an asset classified as a current asset?
An asset is something that is considered to be a future economic benefit of the business a current asset is the same but that future economic benefit is expected to occur within 12 months.
Why are preliminary expenses considered as current assets?
because we get the benifit of such expenses in future
Is prepay insurance a current asset?
Yes any expense paid in advance is current assets as the benefit of that amount is required to be taken in future.
Is a customer deposit a current liability?
Yes, customer deposits is that amount which is received in advance for the services in future.
A change in the estimated useful life of equipment requires?
that the amount of periodic depreciation be changed in the current year and in future years.
What is a discount card used for?
Students are the future product consumers therefore, shops issue Discount cards to let them purchase the goods that are ready on the market at discounted prices. However, these Discount cards are not transferrable. Parents cannot use them.
What is the term 'discounted cash flow' in reference to?
The term 'discounted cash flow' refers to a financial valuation method used to estimate the intrinsic value of an investment or business. It involves projecting the future cash flows generated by the investment and then discounting them back to their present value using an appropriate discount rate. The discounted cash flows are then summed up to determine the net present value (NPV) of the investment.
What is the meaning of present value?
Present Value means the current value of future cash flows discounted at the appropriate discount rate. Say I gave you a document promising to give the bearer $100,000 on a particular date. If the date was tomorrow, you could sell the document today for close to $100,000. If the date was 100 years from now, the document is close to worthless. On the settlement date, it's worth $100,000. The "present value" is the value right now of a promise to pay in the future. Usually you calculate the present value based on the period of time and an interest rate, also known as the discount rate.
Why present values are dependent upon interest rates?
Interest rates are also known as discount rates because in order to calculate the present value of a future amount, the future amount must be discounted back to the present
Where are some good places to look for discount computers?
There are many different places to find a good quality computer at a discounted price online. Some local stores might carry good quality computers with a discounted price.
Where can you purchase discount laptop computers?
One can purchase a discounted laptop computer used through Kijji, Craigs List, and Ebay. One may find a demo or older model which will give them a discounted price at places like Staples, Future Shop, and Best Buy.
What is an example of a cost-benefit analysis that is not straightforward?
If the benefits and costs occur in different time periods, it may be necessary to discount the future cash flows to their current equivalent worth.
Discount rate in natural resource management?
Discounting means the proceedure by which we find the present value of future benefits. If the discount rate is low then the availability of resources in future is moreIf the discount rate is high then the availability of resources in future is less .ie. faster will be the depletion of natural resources leaving less for future generation
What are the Esperanto words for future and current?
The Esperanto word for "future" is "estonteco," and the word for "current" is "nuna."
When do you use a discounted cash flow and a future cash flow?
You use it when you want a more accurate valuation of an asset or business. A Discounted Cash Flow analysis (DCF) is performed to project the present value of future cash flows. A single, current year of operations is studied to determine the net operating revenue (Income minus recurring expenses). That year is the extrapolated forward for a holding period (5 years, 10 years). Each of those years are added together and then "discounted" (the opposite of compounding) at an arbitrary rate factoring in the risks associated with collection of future cash flows (inflation, true cost of equity and debt, risk of interruption in cash flow, the unknown) That calculation provides the net present value of the cash flow. If the discount rate you used yields a value greater than the initial equity, the deal is positive. If the discount rate is recalculated upward so that the net present value and the initial equity are equalized, (no longer being greater but matched) the resulting recalculation number is your internal rate of return. (IRR)
What variables are required to calculate the present value of a future amount?
The future amount itself and a discount rate.
How is future price related to current demand?
Future price is not related to current demand
