A cost is considered relevant if:
i think cash is current asset
postage stamps are not considered cash or a cash equivalent. The reason is that stamps are not considered as liquid as cash because you can not demand cash payment for them.
The temporary cash surplus is managed just like any other cash. The relevant transactions should be recorded on how the cash has been used.
a detailed plan of future cash flows
The process of calculating the present value of a future cash flow is called discounting. This involves applying a discount rate to future cash flows to account for the time value of money, which reflects the principle that a dollar today is worth more than a dollar in the future. The present value is determined by dividing the future cash flow by (1 + the discount rate) raised to the power of the number of periods until the cash flow occurs. This calculation helps in assessing the worth of future cash flows in today's terms.
i think cash is current asset
The term "future cash flow(s)" describes cash that will be received in the future.
postage stamps are not considered cash or a cash equivalent. The reason is that stamps are not considered as liquid as cash because you can not demand cash payment for them.
Yes, depreciation is considered a sunk cost in financial analysis. Sunk costs are costs that have already been incurred and cannot be recovered, so they are not relevant for future decision-making. Depreciation is a non-cash expense that reflects the decrease in value of an asset over time, and it is treated as a sunk cost in financial analysis.
cash equalivant
The temporary cash surplus is managed just like any other cash. The relevant transactions should be recorded on how the cash has been used.
a detailed plan of future cash flows
The process of calculating the present value of a future cash flow is called discounting. This involves applying a discount rate to future cash flows to account for the time value of money, which reflects the principle that a dollar today is worth more than a dollar in the future. The present value is determined by dividing the future cash flow by (1 + the discount rate) raised to the power of the number of periods until the cash flow occurs. This calculation helps in assessing the worth of future cash flows in today's terms.
The present value of future cash flows is inversely related to the interest rate.
no, it's A/R
no, it's A/R
In valuing a firm with no cash dividend, one approach is to assume that at some point in the future a cash dividend will be paid. You can then take the present value of future cash dividends. A second approach is to take the present value of future earnings as well as a future anticipated stock price. The discount rate applied to future earnings is generally higher than the discount rate applied to future dividends.