For a proposed new business, a financial analysis focuses exclusively on its ability to generate positive cash flow in the shortest time possible.
Answer the following statement true (T) or false (F)
True
For a proposed business, the financial analysis focuses almost exclusively on its ability to generate positive cash flows in the shortest time possible.
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A company produces 200 microwave ovens per month, each of which includes one electrical circuit. The company currently manufactures the circuits in-house but is considering outsourcing the circuits at a contract cost of $30 each. Currently, the cost of producing circuits in-house includes variable costs of $22 per circuit and fixed costs of $5000 per month. Assume the company could eliminate all fixed costs by outsourcing and that there is no alternative use for the facilities presently being used to make circuits. If the company outsources, operating income will ________.
A) increase by $1600 B) decrease by $6000 C) decrease by $1600 D) increase by $3400
Price-, service-, and status-oriented shoppers each have very similar perceptions of value
Indicate whether the statement is true or false
The process of evaluating the present value of any stream of future cash flows so that management can compare two streams of cash flows in terms of their financial value is
A) annual cash flow (ACF) analysis. B) discretionary cash flow (DCF) analysis. C) discounted cash flow (DCF) analysis. D) future cash flow (FCF) analysis.
When Hershey introduced Hershey's Cookie Layer Crunch, it promoted directly to consumers and told them to ask for the product at their favorite stores. This is an example of a ____ policy.
A. impulsion B. push C. customer promotional D. pull E. channel promotional