In alternative investments, constant cash flow stream is equal to initial cash flow stream in approach which is classified as

In alternative investments, constant cash flow stream is equal to initial cash flow stream in approach which is classified as Correct Answer equivalent annual annuity

In alternative investments, constant cash flow stream is equal to initial cash flow stream in approach which is classified as equivalent annual annuity. The equivalent annual annuity approach is one of two methods used in capital budgeting to compare mutually exclusive projects with unequal lives. The EAA approach calculates the constant annual cash flow generated by a project over its lifespan if it was an annuity.
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Related Questions

Which of the following activities should be shown separately in the cash flow statement prepared as per Accounting Standard-3?
1. Cash flow from borrowing activities
2. Cash flow from operating activities
3. Cash flow from financing activities
4. Cash flow from investing activities
5. Cash flow from miscellaneous activitie
Which of the following activities should be shown separately in the cash flow statement prepared as per accounting standard-3?
I. Cash flow from borrowing activities.
II. Cash flow from operating activities.
III. Cash flow from financing activities.
IV. Cash flow from investing activities.
V. Cash flow from miscellaneous activities.
Which of the following are examples of cash flow from operating activities as per AS-7?
1. Cash receipts from the sale of goods and the rendering of services.
2. Cash receipts from disposal of intangible assets.
3. Cash receipts from royalties, fees, commissions and other revenue.
4. Cash payments to suppliers for goods and services.
5. Cash proceeds from issuing shares or other similar instruments.
6. Cash payments to and on behalf of employees.
Select the correct answer:
The fresh feed to an ammonia synthesis reactor contains nitrogen, hydrogen and 2.0 mole per cent inerts. The molar ratio of H2:N2 is 3:1. The product stream consists of pure ammonia. Since conversion in the reactor is only 15%, a recycle stream is used and in order to avoid build-up of inerts, a purge stream is withdrawn. The rate of purge stream is adjusted to keep inert concentration in the recycle stream at 8 mole per cent. For a fresh feed rate of 100 moles/hr. Note that recycle stream contains only nitrogen, hydrogen and inerts. The N2:H2 ratio of 1:3 is maintained in every process stream, and calculate the moles of nitrogen entering the reactor and in the recycle stream?
The fresh feed to an ammonia synthesis reactor contains nitrogen, hydrogen and 2.0 mole per cent inerts. The molar ratio of H2:N2 is 3:1. The product stream consists of pure ammonia. Since conversion in the reactor is only 15%, a recycle stream is used and in order to avoid build-up of inerts, a purge stream is withdrawn. The rate of purge stream is adjusted to keep inert concentration in the recycle stream at 8 mole per cent. For a fresh feed rate of 100 moles/hr. Note that recycle stream contains only nitrogen, hydrogen and inerts. The N2:H2 ratio of 1:3 is maintained in every process stream, and calculate the number of moles, moles of inerts and moles of hydrogen in the recycle stream?
The fresh feed to an ammonia synthesis reactor contains nitrogen, hydrogen and 2.0 mole per cent inerts. The molar ratio of H2:N2 is 3:1. The product stream consists of pure ammonia. Since conversion in the reactor is only 15%, a recycle stream is used and in order to avoid build-up of inerts, a purge stream is withdrawn. The rate of purge stream is adjusted to keep inert concentration in the recycle stream at 8 mole per cent. For a fresh feed rate of 100 moles/hr. Note that recycle stream contains only nitrogen, hydrogen and inerts. The N2:H2 ratio of 1:3 is maintained in every process stream. Calculate the moles of ammonia produced.
Free cash flow is Rs 12000, an operating cash flow is Rs 4000, an investment outlay cash flow is Rs 5000 then salvage cash flow would be
An investment outlay cash flow is Rs 4000, operating cash flow is Rs 1000 and salvage cash flow is Rs 5000 then free cash flow would be
An investment outlay cash flow is Rs 2000, an operating cash flow is Rs 1500 and salvage cash flow is Rs 3000 then free cash flow would be
Free cash flow is Rs 15000, operating cash flow is Rs 3000, investment outlay cash flow is Rs 5000 then salvage cash flow will be