Depreciation affect the flow of cash
Explain in brief the depreciation expense as it comes on the income statement. How can depreciation affect the flow of cash?
Expert
Accounting depreciation is the allotment of the asset's initial cost over time. Depreciation expense present on an income statement is the amount of the assets initial cost allotted to the period covered under the income statement.
Depreciation expense is not like a cash flow. It is an expense category which affects cash flow because it is tax-deductible. Depreciation expense decreases taxable income of a company and thus its income tax liability. Thus it can be said that depreciation in a way reduces cash outflows.
Explain all facts regarding the Black–Scholes equation.
How many prices have in practice option for put–call parity?
Illustrates an example of Arbitrage?
How can a financial manager decide whether to accept or to reject proposed capital budgeting projects for a given MCC and IOS?
Explain the tool of Discretization methods in Quantitative Finance.
Describe the concept of the Sharpe performance measure.The Sharpe performance measure (SHP) is a risk-adjusted performance measure. This is describing as the mean excess return to portfolio above the risk-free rate divided by the portfolio's sta
Good fellow national bank decided to compete with a savings and loan by offering 30 year fixed rate mortgage loans at 8% annual interest. It plans to obtain the money got the loans by selling one year 6% CD to it's depositors. During first year of operation, good fellows sold it's depositors 1,000,0
Explain the important properties of Brownian motion.
How are financial or economic variable represented by index?
What is cardinal utility?
18,76,764
1956909 Asked
3,689
Active Tutors
1424575
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!