Inputs to the Financing Process Include

question 16

Multiple Choice

Inputs to the financing process include:

• A)Remittance advices, deposit slips, checks, and stock market data
• B)Remittance advices, deposit slips, checks, and receiving reports
• C)Deposit slips, checks, receiving reports, and purchase requisitions
• D)Deposit slips, checks, purchase requisitions, and financial institution profiles

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Definitions:

Internal Rate

Often refers to the internal rate of return (IRR), a metric used in capital budgeting to estimate the profitability of potential investments.

Cash Inflows

The total amount of money being transferred into a business, usually from operating, investing, and financing activities.

Discount Rate

The rate applied within discounted cash flow analysis for assessing the present worth of forthcoming cash flows.

Net Present Value

A method of evaluating investments by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period of time.