BuboFlash - helps with learning

Edited, memorised or added to reading queue

Do you want BuboFlash to help you learning these things? Click here to log in or create user.

Flashcard 1425549954316

Tags

#cfa-level-1 #economics #economics-in-a-global-context #los #reading-20-international-trade-and-capital-flows

Question

If there are no restrictions on trade, then members of an open economy can buy and sell goods and services at the price prevailing in the world market, the [...]

Answer

world price .

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
d>An open economy , is an economy that trades with other countries. If there are no restrictions on trade, then members of an open economy can buy and sell goods and services at the price prevailing in the world market, the world price .<html>

Original toplevel document

2.1. Basic Terminology
ods and services are produced and consumed domestically. The price of a good or service in such an economy is called its autarkic price . An autarkic economy is also known as a closed economy because it does not trade with other countries. An open economy , in contrast, is an economy that trades with other countries. If there are no restrictions on trade, then members of an open economy can buy and sell goods and services at the price prevailing in the world market, the world price . An open economy can provide domestic households with a larger variety of goods and services, give domestic companies access to global markets and customers, and offer goods and services that are more competitively priced. In addition, it can offer domestic investors access to foreign capital markets, foreign assets, and greater investment opportunities. For capital intensive industries, such as automobiles and aircraft, manufacturers can take advantage of economies of scale because they have access to a much larger market. Free trade occurs when there are no government restrictions on a country’s ability to trade. Under free trade, global aggregate demand and supply determine the equilibrium quantity an

Flashcard 1428074401036

Tags

#derecho #introduccion-al-derecho

Question

las normas en general derivan del [...]

Answer

Derecho natural

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
las normas en general derivan del Derecho natural y de éste resultan o emanan las leyes naturales y las leyes sociales,

Original toplevel document

1.3LA NORMA
Antes de profundizar en el tema de la norma, es pertinente mencionar que las normas en general derivan del Derecho natural y de éste resultan o emanan las leyes naturales y las leyes sociales, como se explicará a detalle en el siguiente apartado. Ahora bien, el Derecho depende de la norma, de la sanción que el Estado impone a los ciudadanos para la convivencia

Flashcard 1432995368204

Tags

#13-dic-2016 #mural

Question

El aumento del diesel podría ser trasladado al costo del flete, el cual podría subir entre [...] por ciento.

Answer

6 y 8

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
de la Cámara Nacional del Autotransporte de Carga, el precio del diesel subirá entre 15 y 20 por ciento para el siguiente año. Este aumento, considera la Cámara, podría ser trasladado al costo del flete, el cual podría subir entre 6 y 8 por ciento, pero eso dependerá de las negociaciones que cada transportista logre con sus clientes.<body><html>

Original toplevel document

Encarecerá combustible mercancías
Para 2017 se espera que se encarezcan las mercancías por efecto del gasolinazo. Según estimaciones de la Cámara Nacional del Autotransporte de Carga, el precio del diesel subirá entre 15 y 20 por ciento para el siguiente año. Este aumento, considera la Cámara, podría ser trasladado al costo del flete, el cual podría subir entre 6 y 8 por ciento, pero eso dependerá de las negociaciones que cada transportista logre con sus clientes. Refugio Muñoz, vicepresidente ejecutivo de ese órgano empresarial, explicó que el combustible representa, en promedio, entre 30 y 35 por ciento de los costos operativos de lo

Flashcard 1433116478732

Tags

#4-3-the-investment-opportunity-set #cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-5-consumer-equilibrium #study-session-4

Question

Currently, a consumer is buying both sorbet and gelato each week. His MRS_GS [marginal rate of substitution of gelato (G) for sorbet (S)] equals 0.75. The price of gelato is €1 per scoop, and the price of sorbet is €1.25 per scoop.

Determine whether the consumer is currently optimizing his budget over these two desserts. Justify your answer.

Answer

In this example, the condition for consumer equilibrium is MRS_GS = P_{G /}P_S. Because P_{G /}P_S = 0.8 and MRS_GS = 0.75, the consumer is clearly not allocating his budget in a way that maximizes his utility, subject to his budget constraint.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
Consumer Equilibrium Currently, a consumer is buying both sorbet and gelato each week. His MRS GS [marginal rate of substitution of gelato (G) for sorbet (S)] equals 0.75. The price of gelato is €1 per scoop, and the price of sorbet is €1.25 per scoop. Determine whether the consumer is currently optimizing his budget over these two desserts. Justify your answer. Explain whether the consumer should buy more sorbet or more gelato, given that he is not currently optimizing his budget. Solution to 1: In this example, the

Original toplevel document

5. CONSUMER EQUILIBRIUM: MAXIMIZING UTILITY SUBJECT TO THE BUDGET CONSTRAINT
on is less than the price ratio—meaning that the price for that additional unit is above her willingness to pay. Even though she could afford bundle c, it would not be the best use of her income. EXAMPLE 5 Consumer Equilibrium Currently, a consumer is buying both sorbet and gelato each week. His MRS GS [marginal rate of substitution of gelato (G) for sorbet (S)] equals 0.75. The price of gelato is €1 per scoop, and the price of sorbet is €1.25 per scoop. Determine whether the consumer is currently optimizing his budget over these two desserts. Justify your answer. Explain whether the consumer should buy more sorbet or more gelato, given that he is not currently optimizing his budget. Solution to 1: In this example, the condition for consumer equilibrium is MRS GS = P G /P S . Because P G /P S = 0.8 and MRS GS = 0.75, the consumer is clearly not allocating his budget in a way that maximizes his utility, subject to his budget constraint. Solution to 2: The MRS GS is the rate at which the consumer is willing to give up sorbet to gain a small additional amount of gelato, which is 0.75 scoops of sorbet to gain one scoop of gelato. The price ratio, P G /P S (0.8), is the rate at which he must give up sorbet to gain an additional small amount of gelato. In this case, the consumer would be better off spending a little less on gelato and a little more on sorbet. 5.2. Consumer Response to Changes in Income: Normal and Inferior Goods The consumer’s behavior is constrained by his income a

Flashcard 1438091709708

Tags

#italian #italian-grammar

Question

The (how many) [...] main ways in which verbs can express actions or events are known as moods.

Answer

seven

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
The seven main ways in which verbs can express actions or events are known as moods. The four finite moods – all of which, except the imperative, have a full range of tenses – are: the indicative

Original toplevel document (pdf)

cannot see any pdfs

Flashcard 1438143352076

Tags

#analyst-notes #cfa-level-1 #corporate-finance #introduction #reading-35-capital-budgeting

Question

The "budget" is aplan which details [...] during a future period.

Answer

projected cash inflows and outflows

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Subject 1. Capital Budgeting: Introduction
ssets) whose cash flows are expected to extend beyond one year. Managers analyze projects and decide which ones to include in the capital budget. "Capital" refers to long-term assets. The "budget" is a plan which details projected cash inflows and outflows during a future period. The typical steps in the capital budgeting process: Generating good investment ideas to consider. Analyzing individual pro

Flashcard 1438152002828

Tags

#analyst-notes #cfa-level-1 #corporate-finance #introduction #reading-35-capital-budgeting

Question

Which questions should you ask in the "Planning the capital budget" step?

How does the project [...]

What's the [...]

Answer

fit within the company's overall strategies?

timeline and priority?

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
The typical steps in the capital budgeting process: Generating good investment ideas to consider. Analyzing individual proposals (forecasting cash flows, evaluating profitability, etc.). Planning the capital budget. How does the project fit within the company's overall strategies? What's the timeline and priority? Monitoring and post-auditing. The post-audit is a follow-up of capital budgeting decisions. It is a key element of capital budgeting. By comparing actual results with predicted results

Original toplevel document

Subject 1. Capital Budgeting: Introduction
include in the capital budget. "Capital" refers to long-term assets. The "budget" is a plan which details projected cash inflows and outflows during a future period. The typical steps in the capital budgeting process: Generating good investment ideas to consider. Analyzing individual proposals (forecasting cash flows, evaluating profitability, etc.). Planning the capital budget. How does the project fit within the company's overall strategies? What's the timeline and priority? Monitoring and post-auditing. The post-audit is a follow-up of capital budgeting decisions. It is a key element of capital budgeting. By comparing actual results with predicted results and then determining why differences occurred, decision-makers can: Improve forecasts (based on which good capital budgeting decisions can be made). Otherwise, you will have the GIGO (garbage in, garbage out) problem. Improve operations, thus making capital decisions well-implemented. Project classifications: Replacement projects. There are two types of replacement d

Flashcard 1438154362124

Tags

#analyst-notes #cfa-level-1 #corporate-finance #introduction #reading-35-capital-budgeting

Question

The post-audit is a [...] of [...] decisions.

Answer

follow-up of capital budgeting decisions

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
osals (forecasting cash flows, evaluating profitability, etc.). Planning the capital budget. How does the project fit within the company's overall strategies? What's the timeline and priority? Monitoring and post-auditing. The post-audit is a follow-up of capital budgeting decisions. It is a key element of capital budgeting. By comparing actual results with predicted results and then determining why differences occurred, decision-makers can: Im

Original toplevel document

Flashcard 1438156721420

Tags

#analyst-notes #cfa-level-1 #corporate-finance #introduction #reading-35-capital-budgeting

Question

The post-audit is a [...] of capital budgeting. (regarding importance)

Answer

key element

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
ility, etc.). Planning the capital budget. How does the project fit within the company's overall strategies? What's the timeline and priority? Monitoring and post-auditing. The post-audit is a follow-up of capital budgeting decisions. It is a key element of capital budgeting. By comparing actual results with predicted results and then determining why differences occurred, decision-makers can: Improve forecasts (base

Original toplevel document

Flashcard 1438159080716

Tags

#analyst-notes #cfa-level-1 #corporate-finance #introduction #reading-35-capital-budgeting

Question

In monitoring and post-auditing decision-makers can:

Improve [...] thus making capital decisions well-implemented.

Answer

operations

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
he post-audit is a follow-up of capital budgeting decisions. It is a key element of capital budgeting. By comparing actual results with predicted results and then determining why differences occurred, decision-makers can: Improve forecasts (based on which good capital budgeting decisions can be made). Otherwise, you will have the GIGO (garbage in, garbage out) problem. Improve operations, thus making capital decisions well-implemented. <body><html>

Original toplevel document

Annotation 1438161440012

#analyst-notes #cfa-level-1 #corporate-finance #introduction #reading-35-capital-budgeting

Project classifications:

Replacement projects. There are two types of replacement decisions:
- Replacement decisions to maintain a business. The issue is twofold: should the existing operations be continued? If yes, should the same processes continue to be used? Maintenance decisions are usually made without detailed analysis.
- Replacement decisions to reduce costs. Cost reduction projects determine whether to replace serviceable but obsolete equipment. These decisions are discretionary and a detailed analysis is usually required.
The cash flows from the old asset must be considered in replacement decisions. Specifically, in a replacement project, the cash flows from selling old assets should be used to offset the initial investment outlay. Analysts also need to compare revenue/cost/depreciation before and after the replacement to identify changes in these elements.
Expansion projects. Projects concerning expansion into new products, services, or markets involve strategic decisions and explicit forecasts of future demand, and thus require detailed analysis. These projects are more complex than replacement projects.
Regulatory, safety and environmental projects. These projects are mandatory investments, and are often non-revenue-producing.
Others. Some projects need special considerations beyond traditional capital budgeting analysis (for example, a very risky research project in which cash flows cannot be reliably forecast).

status	not read	reprioritisations
last reprioritisation on		suggested re-reading day
started reading on		finished reading on

Subject 1. Capital Budgeting: Introduction
ood capital budgeting decisions can be made). Otherwise, you will have the GIGO (garbage in, garbage out) problem. Improve operations, thus making capital decisions well-implemented. Project classifications: Replacement projects. There are two types of replacement decisions: Replacement decisions to maintain a business. The issue is twofold: should the existing operations be continued? If yes, should the same processes continue to be used? Maintenance decisions are usually made without detailed analysis. Replacement decisions to reduce costs. Cost reduction projects determine whether to replace serviceable but obsolete equipment. These decisions are discretionary and a detailed analysis is usually required. The cash flows from the old asset must be considered in replacement decisions. Specifically, in a replacement project, the cash flows from selling old assets should be used to offset the initial investment outlay. Analysts also need to compare revenue/cost/depreciation before and after the replacement to identify changes in these elements. Expansion projects. Projects concerning expansion into new products, services, or markets involve strategic decisions and explicit forecasts of future demand, and thus require detailed analysis. These projects are more complex than replacement projects. Regulatory, safety and environmental projects. These projects are mandatory investments, and are often non-revenue-producing. Others. Some projects need special considerations beyond traditional capital budgeting analysis (for example, a very risky research project in which cash flows cannot be reliably forecast). LOS a. describe the capital budgeting process and distinguish among the various categories of capital projects; <body><html>

Flashcard 1438162488588

Tags

#analyst-notes #cfa-level-1 #corporate-finance #introduction #reading-35-capital-budgeting

Question

Project classifications:

Replacement projects.
Expansion projects.
[...]
Others.

Answer

Regulatory, safety and environmental projects.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
e cash flows from selling old assets should be used to offset the initial investment outlay. Analysts also need to compare revenue/cost/depreciation before and after the replacement to identify changes in these elements. Expansion projects. Projects concerning expansion into new products, services, or markets involve strategic decisions and explicit forecasts of future demand, and thus require detailed analysis. These proj

Original toplevel document

Flashcard 1438164847884

Tags

#analyst-notes #cfa-level-1 #corporate-finance #introduction #reading-35-capital-budgeting

Question

Replacement projects.

There are two types of replacement decisions:

to [...]
to reduce costs.

Answer

to maintain a business.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
Project classifications: Replacement projects. There are two types of replacement decisions: Replacement decisions to maintain a business. The issue is twofold: should the existing operations be continued? If yes, should the same processes continue to be used? Maintenance decisions are usually made without detailed analysi

Original toplevel document

Flashcard 1438167207180

Tags

#analyst-notes #cfa-level-1 #corporate-finance #introduction #reading-35-capital-budgeting

Question

Replacement decisions to maintain a business. The issue is twofold: [...]? If yes, should the same processes continue to be used?

Answer

should the existing operations be continued?

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
ject classifications: Replacement projects. There are two types of replacement decisions: Replacement decisions to maintain a business. The issue is twofold: should the existing operations be continued? If yes, should the same processes continue to be used? Maintenance decisions are usually made without detailed analysis. Replacement decisions to reduce costs. Cost reduction projects d

Original toplevel document

Annotation 1438168780044

#biochem

Th e 2ʹ-OH group in an RNA nucleotide can attack and break the phosphodiester linkage at the 3ʹ position, as shown in Figure 1.26. DNA lacks the 2ʹ-OH group, and so DNA is more chemically stable

status	not read	reprioritisations
last reprioritisation on		suggested re-reading day
started reading on		finished reading on

pdf

cannot see any pdfs

Flashcard 1438171139340

Tags

#analyst-notes #cfa-level-1 #corporate-finance #introduction #reading-35-capital-budgeting

Question

Replacement decisions to maintain a business. [...] are usually made without detailed analysis.

Answer

Maintenance decisions

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
types of replacement decisions: Replacement decisions to maintain a business. The issue is twofold: should the existing operations be continued? If yes, should the same processes continue to be used? Maintenance decisions are usually made without detailed analysis. Replacement decisions to reduce costs. Cost reduction projects determine whether to replace serviceable but obsolete equipment. These decisio

Original toplevel document

Flashcard 1438175857932

Tags

#analyst-notes #cfa-level-1 #corporate-finance #introduction #reading-35-capital-budgeting

Question

Replacement decisions to reduce costs. These decisions are discretionary and a [...] is usually required.

Answer

detailed analysis

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
be used? Maintenance decisions are usually made without detailed analysis. Replacement decisions to reduce costs. Cost reduction projects determine whether to replace serviceable but obsolete equipment. These decisions are discretionary and a detailed analysis is usually required. The cash flows from the old asset must be considered in replacement decisions. Specifically, in a replacement project, the cash flows from sell

Original toplevel document

Flashcard 1438178217228

Tags

#analyst-notes #cfa-level-1 #corporate-finance #introduction #reading-35-capital-budgeting

Question

The [...] from the old asset must be considered in replacement decisions.

Answer

cash flows

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
analysis. Replacement decisions to reduce costs. Cost reduction projects determine whether to replace serviceable but obsolete equipment. These decisions are discretionary and a detailed analysis is usually required. The cash flows from the old asset must be considered in replacement decisions. Specifically, in a replacement project, the cash flows from selling old assets should be used to offset the initial inves

Original toplevel document

Flashcard 1438180576524

Tags

#analyst-notes #cfa-level-1 #corporate-finance #introduction #reading-35-capital-budgeting

Question

Specifically, in a [...], the cash flows from selling old assets should be used to offset the initial investment outlay.

Answer

replacement project

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
replace serviceable but obsolete equipment. These decisions are discretionary and a detailed analysis is usually required. The cash flows from the old asset must be considered in replacement decisions. Specifically, in a replacement project, the cash flows from selling old assets should be used to offset the initial investment outlay. Analysts also need to compare revenue/cost/depreciation before and after the replacement

Original toplevel document

Flashcard 1438182935820

Tags

#analyst-notes #cfa-level-1 #corporate-finance #introduction #reading-35-capital-budgeting

Question

Replacement projects.

Analysts also need to compare (3things) [...] before and after the replacement to identify changes in these elements.

Answer

revenue/cost/depreciation

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
he cash flows from the old asset must be considered in replacement decisions. Specifically, in a replacement project, the cash flows from selling old assets should be used to offset the initial investment outlay. Analysts also need to compare revenue/cost/depreciation before and after the replacement to identify changes in these elements. Expansion projects. Projects concerning expansion into new products, services, or markets i

Original toplevel document

Flashcard 1438185295116

Tags

#analyst-notes #cfa-level-1 #corporate-finance #introduction #reading-35-capital-budgeting

Question

Projects concerning expansion into new products, or markets involve [...] and explicit forecasts of future demand, and thus require detailed analysis.

Answer

strategic decisions

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
sts also need to compare revenue/cost/depreciation before and after the replacement to identify changes in these elements. Expansion projects. Projects concerning expansion into new products, services, or markets involve strategic decisions and explicit forecasts of future demand, and thus require detailed analysis. These projects are more complex than replacement projects. Regulatory, safety and environmen

Original toplevel document

Flashcard 1438187916556

Tags

#analyst-notes #cfa-level-1 #corporate-finance #introduction #reading-35-capital-budgeting

Question

Expansion projects projects are more [...] than [...] projects.

Answer

more complex

replacement

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
ments. Expansion projects. Projects concerning expansion into new products, services, or markets involve strategic decisions and explicit forecasts of future demand, and thus require detailed analysis. These projects are more complex than replacement projects. Regulatory, safety and environmental projects. These projects are mandatory investments, and are often non-revenue-producing.

Original toplevel document

Annotation 1438189489420

#biochem

Glycine (Gly, G), with just a hydrogen atom as its sidechain, is the simplest of the 20 amino acids. It can be grouped with the hydrophobic amino acids or treated as the sole member of a fourth class because of its special properties. Th ese arise from the absence of a bulky sidechain, which allows glycine to adopt three- dimensional conformations that are energetically unfavorable for other amino acids, so that segments of protein chains that contain glycine can be much more fl exible than those that do not.

status	not read	reprioritisations
last reprioritisation on		suggested re-reading day
started reading on		finished reading on

pdf

cannot see any pdfs

Flashcard 1438191848716

Tags

#analyst-notes #cfa-level-1 #corporate-finance #introduction #reading-35-capital-budgeting

Question

Regulatory, safety and environmental projects are [...], and are often non-revenue-producing.

Answer

mandatory investments

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
olve strategic decisions and explicit forecasts of future demand, and thus require detailed analysis. These projects are more complex than replacement projects. Regulatory, safety and environmental projects. These projects are mandatory investments, and are often non-revenue-producing. Others. Some projects need special considerations beyond traditional capital budgeting analysis (for example, a very risky research

Original toplevel document

Flashcard 1438194208012

Tags

#analyst-notes #cfa-level-1 #corporate-finance #introduction #reading-35-capital-budgeting

Question

Others. Some projects need special considerations beyond traditional capital budgeting analysis for example, a very [...] in which cash flows cannot be reliably forecast.

Answer

risky research project

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
ty and environmental projects. These projects are mandatory investments, and are often non-revenue-producing. Others. Some projects need special considerations beyond traditional capital budgeting analysis (for example, a very risky research project in which cash flows cannot be reliably forecast). <body><html>

Original toplevel document

Flashcard 1438197353740

Tags

#narm #trauma

Question

What are the core capasities essentials to well bing with each core need (Connection, attunment, trust, autonomy and love)

Answer

Connection	Capacity to be in touch with your body and your emotions. Capcity to be in connection with others.
Attunment	Capacity to attune to our needs and emotions. Capacity to recongize, reach out for, and take in physical and emotinal nourshment
Trust	Capacity for healthy dependence and interdependence
Autonomy	Capacity to set approprate boundaries. Capacity to say no and set limits, Capacity to speak our mind w/o guilt or fear
Love/Sex	Capacity to live with an open heart. Capacity to integrat a loing relationship with a vital sexuality.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Flashcard 1438199188748

Question

What are the core difficulties with the 5 adaptive survival styles?

Answer

Core Difficulties for the 5 Adaptive Survival Styles
Adaptive Survival Style	Core Difficulties
Connection	Disconnected from physical and emotional Sealf. Difficulty realitng to others
Attunment	Difficulty knowing what we need. Feeling our needs do not deserve to be met
Trust	Feeling we cannot depend on anyone but ourselves. Feelng we have to always be in contorl.
Autonomy	Feeling burden and pressured. Difficulty setting limits and saying "no" directly
Love n Sex	Difficulty integrating heart and sexuality. Self esteem based on looks and performance.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Flashcard 1438214130956

Tags

#vocabulary

Question

Offset definition

Answer

something that counterbalances, counteracts, or compensates for something else; compensating equivalent.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Article 1438220160268

Gasolinas, dólar y precios
#3-ene-2017 #el-financiero #enrique-quintana #noticias

Si nos quitamos un poco el enojo –sin duda justificable- y vemos los hechos objetivos, podremos entender por qué subieron los precios de las gasolinas y cuáles son las implicaciones que tendrá el aumento, así como los escenarios previsibles… algo más útil que echarse a perder el hígado. 1-¿Por qué subió la gasolina? La razón es muy simple: porque cuesta más. En noviembre se vendieron 828 mil barriles diarios de gasolinas automotrices y se produjeron en el país 254 mil barriles de ese tipo de productos. Esto quiere decir que se importó alrededor del 70 por ciento de las gasolinas que se vendieron en el país. Y resulta, que la gasolina regular en la Costa del Golfo en Estados Unidos, de donde se importa la mayoría de la que se consume en México, aumentó 18.2 por ciento en dólares en el curso del 2016. Esto significa que en pesos se incrementó en alrededor de 41 por ciento. El incremento promedio de ese tipo de gasolina en México fue de 17.8 por ciento el año pasado. 2- ¿No es cierto que la gasolina subió

Flashcard 1438221470988

Tags

#3-ene-2017 #el-financiero #enrique-quintana #noticias

Question

¿Por que subio la gasolina?

Answer

La razón es muy simple: porque cuesta más.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Gasolinas, dólar y precios
emos entender por qué subieron los precios de las gasolinas y cuáles son las implicaciones que tendrá el aumento, así como los escenarios previsibles… algo más útil que echarse a perder el hígado. 1-¿Por qué subió la gasolina? La razón es muy simple: porque cuesta más. En noviembre se vendieron 828 mil barriles diarios de gasolinas automotrices y se produjeron en el país 254 mil barriles de ese tipo de productos. Esto quiere decir que se importó alred

Flashcard 1438223830284

Tags

#3-ene-2017 #el-financiero #enrique-quintana #noticias

Question

En noviembre se se importó alrededor del [...] por ciento de las gasolinas que se vendieron en el país.

Answer

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Gasolinas, dólar y precios
La razón es muy simple: porque cuesta más. En noviembre se vendieron 828 mil barriles diarios de gasolinas automotrices y se produjeron en el país 254 mil barriles de ese tipo de productos. Esto quiere decir que se importó alrededor del 70 por ciento de las gasolinas que se vendieron en el país. Y resulta, que la gasolina regular en la Costa del Golfo en Estados Unidos, de donde se importa la mayoría de la que se consume

Annotation 1438226189580

#3-ene-2017 #el-financiero #enrique-quintana #noticias

La gasolina regular en la Costa del Golfo en Estados Unidos, de donde se importa la mayoría de la que se consume en México, aumentó 18.2 por ciento en dólares en el curso del 2016. Esto significa que en pesos se incrementó en alrededor de 41 por ciento. El incremento promedio de ese tipo de gasolina en México fue de 17.8 por ciento el año pasado

status	not read	reprioritisations
last reprioritisation on		suggested re-reading day
started reading on		finished reading on

Gasolinas, dólar y precios
28 mil barriles diarios de gasolinas automotrices y se produjeron en el país 254 mil barriles de ese tipo de productos. Esto quiere decir que se importó alrededor del 70 por ciento de las gasolinas que se vendieron en el país. Y resulta, que la gasolina regular en la Costa del Golfo en Estados Unidos, de donde se importa la mayoría de la que se consume en México, aumentó 18.2 por ciento en dólares en el curso del 2016. Esto significa que en pesos se incrementó en alrededor de 41 por ciento. El incremento promedio de ese tipo de gasolina en México fue de 17.8 por ciento el año pasado. 2- ¿No es cierto que la gasolina subió porque el gobierno cobra más impuestos por ella? No, no es cierto. El ingreso que el gobierno obtiene de la venta de gasolinas au

Annotation 1438228548876

#3-ene-2017 #el-financiero #enrique-quintana #noticias

¿No es cierto que la gasolina subió porque el gobierno cobra más impuestos por ella?
No, no es cierto. El ingreso que el gobierno obtiene de la venta de gasolinas automotrices –además del IVA, como el que obtiene en la mayoría de los productos- es el IEPS a las gasolinas. En 2016, hasta el mes de noviembre, se obtuvieron 263 mil millones de pesos por este concepto. Lo previsto obtener para 2017 para ese periodo en el Presupuesto es de 252 mil millones de pesos a precios constantes del 2016. Es decir, en términos reales, el gobierno va a obtener 4.1 por ciento menos por IEPS a gasolinas que el año pasado. Así que el incremento de las gasolinas no implica mayores ingresos para el gobierno.

status	not read	reprioritisations
last reprioritisation on		suggested re-reading day
started reading on		finished reading on

Gasolinas, dólar y precios
co, aumentó 18.2 por ciento en dólares en el curso del 2016. Esto significa que en pesos se incrementó en alrededor de 41 por ciento. El incremento promedio de ese tipo de gasolina en México fue de 17.8 por ciento el año pasado. 2- ¿No es cierto que la gasolina subió porque el gobierno cobra más impuestos por ella? No, no es cierto. El ingreso que el gobierno obtiene de la venta de gasolinas automotrices –además del IVA, como el que obtiene en la mayoría de los productos- es el IEPS a las gasolinas. En 2016, hasta el mes de noviembre, se obtuvieron 263 mil millones de pesos por este concepto. Lo previsto obtener para 2017 para ese periodo en el Presupuesto es de 252 mil millones de pesos a precios constantes del 2016. Es decir, en términos reales, el gobierno va a obtener 4.1 por ciento menos por IEPS a gasolinas que el año pasado. Así que el incremento de las gasolinas no implica mayores ingresos para el gobierno. 3- ¿Cuál es el impacto que tendrá el incremento de las gasolinas en la inflación? El incremento de los precios de las gasolinas impactará en 0.6 puntos porcentuales de m

Annotation 1438230121740

#3-ene-2017 #el-financiero #enrique-quintana #noticias

¿Cuál es el impacto que tendrá el incremento de las gasolinas en la inflación?
El incremento de los precios de las gasolinas impactará en 0.6 puntos porcentuales de manera directa en el índice de precios al consumidor. Esto quiere decir que, en el caso del mes de enero, el incremento de la inflación podría ser del orden de 1.0 a 1.1 por ciento mensual. Esto quiere decir que la inflación anual al término del primer mes de este año será del orden de 4.2 por ciento. Diversos analistas consideran que hacia el término del primer semestre la inflación, considerando los efectos indirectos del alza, podría llegar al 5 por ciento, para terminar el año en algo así como 4.5 por ciento. Ese nivel es equiparable al que teníamos en mayo del 2013 y estaría apenas a la mitad del nivel con el que comenzó el gobierno de Fox.

status	not read	reprioritisations
last reprioritisation on		suggested re-reading day
started reading on		finished reading on

Gasolinas, dólar y precios
recios constantes del 2016. Es decir, en términos reales, el gobierno va a obtener 4.1 por ciento menos por IEPS a gasolinas que el año pasado. Así que el incremento de las gasolinas no implica mayores ingresos para el gobierno. 3- ¿Cuál es el impacto que tendrá el incremento de las gasolinas en la inflación? El incremento de los precios de las gasolinas impactará en 0.6 puntos porcentuales de manera directa en el índice de precios al consumidor. Esto quiere decir que, en el caso del mes de enero, el incremento de la inflación podría ser del orden de 1.0 a 1.1 por ciento mensual. Esto quiere decir que la inflación anual al término del primer mes de este año será del orden de 4.2 por ciento. Diversos analistas consideran que hacia el término del primer semestre la inflación, considerando los efectos indirectos del alza, podría llegar al 5 por ciento, para terminar el año en algo así como 4.5 por ciento. Ese nivel es equiparable al que teníamos en mayo del 2013 y estaría apenas a la mitad del nivel con el que comenzó el gobierno de Fox. 4- ¿De qué va a depender la evolución de los precios de las gasolinas en el año? De lo que pase con los precios internacionales del petróleo y con el tipo de cambio. Si

Article 1438231694604

Propone IP plan para 2017
#3-ene-2017 #el-financiero #noticias

Los empresarios propusieron ayer una serie de medidas económicas de aplicación inmediata para contrarrestar la inflación, promover la inversión y defender el empleo en el país. El sector empresarial propuso una estrategia para hacer frente a los retos internos y externos del país, entre los que se encuentran el combate a la inflación, promover la inversión y defender el empleo. e acuerdo con el Consejo Coordinador Empresarial (CCE), el alza en el precio de las gasolinas generará una presión adicional sobre la economía interna. Por ello, propuso un paquete de 23 medidas de política económica en materia fiscal, gasto e ingresos; política monetaria; inversión y empleos y banca de desarrollo. Por ejemplo, en el área fiscal formula que se garantice un superávit primario, que se reduzca la deuda del gobierno federal, así como establecer mecanismos para evitar un impacto del incremento de la gasolina en transporte público de personas. En cuestiones de política económica, los empresarios plantean que

Annotation 1438233005324

#3-ene-2017 #el-financiero #noticias

El sector empresarial propuso una estrategia para hacer frente a los retos internos y externos del país, entre los que se encuentran el combate a la inflación, promover la inversión y defender el empleo.

status	not read	reprioritisations
last reprioritisation on		suggested re-reading day
started reading on		finished reading on

Propone IP plan para 2017
Los empresarios propusieron ayer una serie de medidas económicas de aplicación inmediata para contrarrestar la inflación, promover la inversión y defender el empleo en el país. El sector empresarial propuso una estrategia para hacer frente a los retos internos y externos del país, entre los que se encuentran el combate a la inflación, promover la inversión y defender el empleo. e acuerdo con el Consejo Coordinador Empresarial (CCE), el alza en el precio de las gasolinas generará una presión adicional sobre la economía interna. Por ello, propuso un

Article 1438234578188

Deuda externa de México frena su crecimiento
#3-ene-2017 #el-financiero #noticias

Alzas en tasas de interés y dólar caro son factores que limitaron el endeudamiento en el tercer trimestre de 2016, conforme a cifras del Banco de México. El dinamismo mostrado por el comportamiento del endeudamiento externo de México perdió fuerza en 2016, lo cual puede ser una señal de un cambio de dirección en su explosivo crecimiento que había registrado desde el 2009 ante las inminentes alzas en las tasas de interés que alejará el dinero barato. El saldo de la deuda bruta ajustada de México ascendió a 419 mil 810 millones de dólares al cierre de septiembre del 2016, de acuerdo con la última información publicada por el Banco de México. Dicho monto representa una disminución de 12 mil 662 millones de dólares con respecto al saldo presentado al cierre de marzo del año pasado, cuando a ascendió a la cifra sin precedente de 432 mil 472 millones. Del primer trimestre del 2009 al mismo lapso del 2016, el saldo de la deuda externa bruta de México creció 157.20 por ciento, al pasar de 168 mil 145 a

Annotation 1438235888908

#3-ene-2017 #el-financiero #noticias

El saldo de la deuda bruta ajustada de México ascendió a 419 mil 810 millones de dólares al cierre de septiembre del 2016

status	not read	reprioritisations
last reprioritisation on		suggested re-reading day
started reading on		finished reading on

Deuda externa de México frena su crecimiento
de México perdió fuerza en 2016, lo cual puede ser una señal de un cambio de dirección en su explosivo crecimiento que había registrado desde el 2009 ante las inminentes alzas en las tasas de interés que alejará el dinero barato. El saldo de la deuda bruta ajustada de México ascendió a 419 mil 810 millones de dólares al cierre de septiembre del 2016, de acuerdo con la última información publicada por el Banco de México. Dicho monto representa una disminución de 12 mil 662 millones de dólares con respecto al saldo presentado al cier

Flashcard 1438236937484

Tags

#3-ene-2017 #el-financiero #noticias

Question

El saldo de la deuda bruta ajustada de México ascendió a [...] millones de dólares al cierre de septiembre del 2016

Answer

419 mil 810

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
El saldo de la deuda bruta ajustada de México ascendió a 419 mil 810 millones de dólares al cierre de septiembre del 2016

Original toplevel document

Annotation 1438239034636

#3-ene-2017 #el-financiero #noticias

Los principales bancos centrales en el mundo están dejando de inyectar liquidez y algunos ya iniciaron las alzas en su tasa de referencia, como es el caso de la Reserva Federal de Estados Unidos.

status	not read	reprioritisations
last reprioritisation on		suggested re-reading day
started reading on		finished reading on

Deuda externa de México frena su crecimiento
exterior fue posible debido a la fuerte liquidez y a las bajas tasas de interés que se presentaron después de la pasada crisis mundial, cuya parte más álgida se alcanzó a finales del 2008. Sin embargo, lo vientos están cambiando. Los principales bancos centrales en el mundo están dejando de inyectar liquidez y algunos ya iniciaron las alzas en su tasa de referencia, como es el caso de la Reserva Federal de Estados Unidos. EL MENSAJE DE LAS CALIFICADORAS El freno al crecimiento de la deuda del exterior en México reportado a finales del 2016, resulta una buena señal dado que ha sido uno de

Article 1438241918220

Subject 2. Basic Principles of Capital Budgeting
#analyst-notes #cfa-level-1 #corporate-finance #has-images #reading-35-capital-budgeting #study-session-10

Capital budgeting decisions are based on incremental after-tax cash flows discounted at the opportunity cost of capital. Assumptions of capital budgeting are: Capital budgeting decisions must be based on cash flows, not accounting income. Accounting profits only measure the return on the invested capital. Accounting income calculations reflect non-cash items and ignore the time value of money. They are important for some purposes, but for capital budgeting, cash flows are what are relevant. Economic income is an investment's after-tax cash flow plus the change in the market value. Financing costs are ignored in computing economic income. Cash flow timing is critical because money is worth more the sooner you get it. Also, firms must have adequate cash flow to meet maturing obligations. The opportunity cost should be charged against a project. Remember that just because something is on hand does not mean it's free. See below for the definition of opportun

Annotation 1438246636812

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Capital budgeting decisions are based on incremental after-tax cash flows discounted at the opportunity cost of capital.

status	not read	reprioritisations
last reprioritisation on		suggested re-reading day
started reading on		finished reading on

Flashcard 1438247685388

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Capital budgeting decisions are based on incremental after-tax cash flows discounted at the [...].

Answer

opportunity cost of capital

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
Capital budgeting decisions are based on incremental after-tax cash flows discounted at the opportunity cost of capital. Assumptions of capital budgeting are:

Original toplevel document

Annotation 1438251355404

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Assumptions of capital budgeting are:

Capital budgeting decisions must be based on cash flows, not accounting income.

Accounting profits only measure the return on the invested capital. Accounting income calculations reflect non-cash items and ignore the time value of money. They are important for some purposes, but for capital budgeting, cash flows are what are relevant.

Economic income is an investment's after-tax cash flow plus the change in the market value. Financing costs are ignored in computing economic income.
Cash flow timing is critical because money is worth more the sooner you get it. Also, firms must have adequate cash flow to meet maturing obligations.
The opportunity cost should be charged against a project. Remember that just because something is on hand does not mean it's free. See below for the definition of opportunity cost.
Expected future cash flows must be measured on an after-tax basis. The firm's wealth depends on its usable after-tax funds.
Ignore how the project is financed. Interest payments should not be included in the estimated cash flows since the effects of debt financing are reflected in the cost of capital used to discount the cash flows. The existence of a project depends on business factors, not financing.

status	not read	reprioritisations
last reprioritisation on		suggested re-reading day
started reading on		finished reading on

Subject 2. Basic Principles of Capital Budgeting
Capital budgeting decisions are based on incremental after-tax cash flows discounted at the opportunity cost of capital. Assumptions of capital budgeting are: Capital budgeting decisions must be based on cash flows, not accounting income. Accounting profits only measure the return on the invested capital. Accounting income calculations reflect non-cash items and ignore the time value of money. They are important for some purposes, but for capital budgeting, cash flows are what are relevant. Economic income is an investment's after-tax cash flow plus the change in the market value. Financing costs are ignored in computing economic income. Cash flow timing is critical because money is worth more the sooner you get it. Also, firms must have adequate cash flow to meet maturing obligations. The opportunity cost should be charged against a project. Remember that just because something is on hand does not mean it's free. See below for the definition of opportunity cost. Expected future cash flows must be measured on an after-tax basis. The firm's wealth depends on its usable after-tax funds. Ignore how the project is financed. Interest payments should not be included in the estimated cash flows since the effects of debt financing are reflected in the cost of capital used to discount the cash flows. The existence of a project depends on business factors, not financing. Important capital budgeting concepts: A sunk cost is a cash outlay that has already been incurred and which

Flashcard 1438252403980

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Assumptions of capital budgeting are (First 2):

Capital budgeting decisions must be based on [...], not [...]
Cash flow timing is critical.

Answer

cash flows

accounting income.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Original toplevel document

Flashcard 1438257122572

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Firms must have adequate cash flow to [...]

Answer

meet maturing obligations.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
are relevant. Economic income is an investment's after-tax cash flow plus the change in the market value. Financing costs are ignored in computing economic income. Cash flow timing is critical because money is worth more the sooner you get it. Also, firms must have adequate cash flow to meet maturing obligations. The opportunity cost should be charged against a project. Remember that just because something is

Original toplevel document

Flashcard 1438259481868

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Assumptions of capital budgeting are (middle one):

The [...] should be [...] against a project

Answer

opportunity cost

charged

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
ncing costs are ignored in computing economic income. Cash flow timing is critical because money is worth more the sooner you get it. Also, firms must have adequate cash flow to meet maturing obligations. The opportunity cost should be charged against a project. Remember that just because something is on hand does not mean it's free. See below for the definition of opportunity cost. Expected future cash flows must be measured o

Original toplevel document

Flashcard 1438261841164

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Assumptions of capital budgeting are (last 2):

Expected future cash flows must be measured [...]
Ignore how the project [...]

Answer

on an after-tax basis.

is financed.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
The opportunity cost should be charged against a project. Remember that just because something is on hand does not mean it's free. See below for the definition of opportunity cost. Expected future cash flows must be measured on an after-tax basis. The firm's wealth depends on its usable after-tax funds. Ignore how the project is financed. Interest payments should not be included in the estimated cash flows since t

Original toplevel document

Annotation 1438264200460

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Accounting profits only measure the return on the invested capital. Accounting income calculations reflect non-cash items and ignore the time value of money. They are important for some purposes, but for capital budgeting, cash flows are what are relevant.

Economic income is an investment's after-tax cash flow plus the change in the market value. Financing costs are ignored in computing economic income.

status	not read	reprioritisations
last reprioritisation on		suggested re-reading day
started reading on		finished reading on

Parent (intermediate) annotation

Open it
Assumptions of capital budgeting are: Capital budgeting decisions must be based on cash flows, not accounting income. Accounting profits only measure the return on the invested capital. Accounting income calculations reflect non-cash items and ignore the time value of money. They are important for some purposes, but for capital budgeting, cash flows are what are relevant. Economic income is an investment's after-tax cash flow plus the change in the market value. Financing costs are ignored in computing economic income. Cash flow timing is critical because money is worth more the sooner you get it. Also, firms must have adequate cash flow to meet maturing obligations. &#13

Original toplevel document

Flashcard 1438265773324

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Accounting profits only measure [...]

Answer

the return on the invested capital.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
Accounting profits only measure the return on the invested capital. Accounting income calculations reflect non-cash items and ignore the time value of money. They are important for some purposes, but for capital budgeting, cash flows are what are releva

Original toplevel document

Flashcard 1438268132620

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Accounting income calculations reflect [...] and ignore [...] .

Answer

non-cash items

the time value of money

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Original toplevel document

Flashcard 1438270491916

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

[...] income calculations reflect non-cash items and ignore the time value of money.

Answer

Accounting

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
d>Accounting profits only measure the return on the invested capital. Accounting income calculations reflect non-cash items and ignore the time value of money. They are important for some purposes, but for capital budgeting, cash flows are what are relevant. Economic income is an investment's after-tax cash flow plus the change in the market value. Financing costs are ignored in computing economic income. &

Original toplevel document

Flashcard 1438272851212

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Economic income is an investment's [...] plus the [...].

Answer

after-tax cash flow

change in the market value

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
ccounting income calculations reflect non-cash items and ignore the time value of money. They are important for some purposes, but for capital budgeting, cash flows are what are relevant. Economic income is an investment's after-tax cash flow plus the change in the market value. Financing costs are ignored in computing economic income. <body><html>

Original toplevel document

Flashcard 1438275210508

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

[...] are ignored in computing economic income.

Answer

Financing costs

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
ignore the time value of money. They are important for some purposes, but for capital budgeting, cash flows are what are relevant. Economic income is an investment's after-tax cash flow plus the change in the market value. Financing costs are ignored in computing economic income. <body><html>

Original toplevel document

Flashcard 1438277569804

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Cash flow timing, besides TVM is critical because firms must [...]

Answer

have adequate cash flow to meet maturing obligations.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
stment's after-tax cash flow plus the change in the market value. Financing costs are ignored in computing economic income. Cash flow timing is critical because money is worth more the sooner you get it. Also, firms must have adequate cash flow to meet maturing obligations. The opportunity cost should be charged against a project. Remember that just because something is on hand does not mean it's free. See below for the definition of opport

Original toplevel document

Flashcard 1438280191244

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

The firm's wealth depends on its usable [...]

Answer

after-tax funds.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
ember that just because something is on hand does not mean it's free. See below for the definition of opportunity cost. Expected future cash flows must be measured on an after-tax basis. The firm's wealth depends on its usable after-tax funds. Ignore how the project is financed. Interest payments should not be included in the estimated cash flows since the effects of debt financing are reflected in the cost of

Original toplevel document

Flashcard 1438282812684

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Interest payments should not be included in the estimated cash flows since the effects of debt financing are reflected in [...].

Answer

the cost of capital used to discount the cash flows

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
-tax basis. The firm's wealth depends on its usable after-tax funds. Ignore how the project is financed. Interest payments should not be included in the estimated cash flows since the effects of debt financing are reflected in the cost of capital used to discount the cash flows. The existence of a project depends on business factors, not financing.<body><html>

Original toplevel document

Flashcard 1438285171980

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

The existence of a project depends on [...], not financing.

Answer

business factors

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
how the project is financed. Interest payments should not be included in the estimated cash flows since the effects of debt financing are reflected in the cost of capital used to discount the cash flows. The existence of a project depends on business factors, not financing.<body><html>

Original toplevel document

Annotation 1438287531276

#analyst-notes #cfa-level-1 #corporate-finance #has-images #reading-35-capital-budgeting #study-session-10

Important capital budgeting concepts:

A sunk cost is a cash outlay that has already been incurred and which cannot be recovered regardless of whether a project is accepted or rejected. Since sunk costs are not increment costs, they should not be included in the capital budgeting analysis.

For example, a small bookstore is considering opening a coffee shop within its store, which will generate an annual net cash outflow of $10,000 from selling coffee. That is, the coffee shop will always be losing money. In the previous year, the bookstore spent $5,000 to hire a consultant to perform an analysis. This $5,000 consulting fee is a sunk cost; whether the coffee shop is opened or not, the $5,000 is spent.
Incremental cash flow is the net cash flow attributable to an investment project. It represents the change in the firm's total cash flow that occurs as a direct result of accepting the project.
- Forget sunk costs.
- Subtract opportunity costs.
- Consider side effects on other parts of the firm: externalities and cannibalization.
- Recognize the investment and recovery of net working capital.
Opportunity cost is the return on the best alternative use of an asset or the highest return that will not be earned if funds are invested in a particular project. For example, to continue with the bookstore example, the space to be occupied by the coffee shop is an opportunity cost - it could be used to sell books and generate a $5,000 annual net cash inflow.
Externalities are the effects of a project on cash flows in other parts of a firm. Although they are difficult to quantify, they should be considered. Externalities can be either positive or negative:
- Positive externalities create benefits for other parts of the firm. For example, the coffee shop may generate some additional customers for the bookstore (who otherwise may not buy books there). Future cash flows generated by positive externalities occur with the project and do not occur without the project, so they are incremental.
- Negative externalities create costs for other parts of the firm. For example, if the bookstore is considering opening a branch two blocks away, some customers who buy books at the old store will switch to the new branch. The customers lost by the old store are a negative externality. The primary type of negative externality is cannibalization, which occurs when the introduction of a new product causes sales of existing products to decline.
Future cash flows represented by negative externalities occur regardless of the project, so they are non-incremental. Such cash flows represent a transfer from existing projects to new projects, and thus should be subtracted from the new projects' cash flows.
Conventional versus non-conventional cash flows.
- A conventional cash flow pattern is one with an initial outflow followed by a series of inflows.
- In a non-conventional cash flow pattern, the initial outflow can be followed by inflows and/or outflows.

status	not read	reprioritisations
last reprioritisation on		suggested re-reading day
started reading on		finished reading on

Subject 2. Basic Principles of Capital Budgeting
d in the estimated cash flows since the effects of debt financing are reflected in the cost of capital used to discount the cash flows. The existence of a project depends on business factors, not financing. Important capital budgeting concepts: A sunk cost is a cash outlay that has already been incurred and which cannot be recovered regardless of whether a project is accepted or rejected. Since sunk costs are not increment costs, they should not be included in the capital budgeting analysis. For example, a small bookstore is considering opening a coffee shop within its store, which will generate an annual net cash outflow of $10,000 from selling coffee. That is, the coffee shop will always be losing money. In the previous year, the bookstore spent $5,000 to hire a consultant to perform an analysis. This $5,000 consulting fee is a sunk cost; whether the coffee shop is opened or not, the $5,000 is spent. Incremental cash flow is the net cash flow attributable to an investment project. It represents the change in the firm's total cash flow that occurs as a direct result of accepting the project. Forget sunk costs. Subtract opportunity costs. Consider side effects on other parts of the firm: externalities and cannibalization. Recognize the investment and recovery of net working capital. Opportunity cost is the return on the best alternative use of an asset or the highest return that will not be earned if funds are invested in a particular project. For example, to continue with the bookstore example, the space to be occupied by the coffee shop is an opportunity cost - it could be used to sell books and generate a $5,000 annual net cash inflow. Externalities are the effects of a project on cash flows in other parts of a firm. Although they are difficult to quantify, they should be considered. Externalities can be either positive or negative: Positive externalities create benefits for other parts of the firm. For example, the coffee shop may generate some additional customers for the bookstore (who otherwise may not buy books there). Future cash flows generated by positive externalities occur with the project and do not occur without the project, so they are incremental. Negative externalities create costs for other parts of the firm. For example, if the bookstore is considering opening a branch two blocks away, some customers who buy books at the old store will switch to the new branch. The customers lost by the old store are a negative externality. The primary type of negative externality is cannibalization, which occurs when the introduction of a new product causes sales of existing products to decline. Future cash flows represented by negative externalities occur regardless of the project, so they are non-incremental. Such cash flows represent a transfer from existing projects to new projects, and thus should be subtracted from the new projects' cash flows. Conventional versus non-conventional cash flows. A conventional cash flow pattern is one with an initial outflow followed by a series of inflows. In a non-conventional cash flow pattern, the initial outflow can be followed by inflows and/or outflows. Some project interactions: Indepe

Flashcard 1438288579852

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Important capital budgeting concepts (first 2):

Sunk costs.

[...] cash [...]

Answer

Incremental cash flow

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
ways be losing money. In the previous year, the bookstore spent $5,000 to hire a consultant to perform an analysis. This $5,000 consulting fee is a sunk cost; whether the coffee shop is opened or not, the $5,000 is spent. Incremental cash flow is the net cash flow attributable to an investment project. It represents the change in the firm's total cash flow that occurs as a direct result of accepting the project.

Original toplevel document

Flashcard 1438290939148

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

A [...] is a cash outlay that and which cannot be recovered regardless of whether a project is accepted or rejected

Answer

sunk cost

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
Important capital budgeting concepts: A sunk cost is a cash outlay that has already been incurred and which cannot be recovered regardless of whether a project is accepted or rejected. Since sunk costs are not increment costs, they should not be included in the capital budgeting ana

Original toplevel document

Flashcard 1438293298444

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Since sunk costs are not [...], they should not be included in the capital budgeting analysis.

Answer

increment costs

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
capital budgeting concepts: A sunk cost is a cash outlay that has already been incurred and which cannot be recovered regardless of whether a project is accepted or rejected. Since sunk costs are not increment costs, they should not be included in the capital budgeting analysis. For example, a small bookstore is considering opening a coffee shop within its store, which will gene

Original toplevel document

Flashcard 1438298803468

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Incremental cash flow important things (first 2)
Forget sunk costs.
Substract [...]

Answer

Subtract opportunity costs.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
spent. Incremental cash flow is the net cash flow attributable to an investment project. It represents the change in the firm's total cash flow that occurs as a direct result of accepting the project. Forget sunk costs. Subtract opportunity costs. Consider side effects on other parts of the firm: externalities and cannibalization. Recognize the investment and recovery of net working capital. O

Original toplevel document

Flashcard 1438301162764

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Incremental cash flow important things (last 2):

Consider [...] on other [...]
Recognize the investment and recovery of net working capital.

Answer

side effects on other parts of the firm: externalities and cannibalization.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Original toplevel document

Flashcard 1438303784204

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Important capital budgeting concepts (middle one):

[...]

Answer

Opportunity cost

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Original toplevel document

Flashcard 1438306143500

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Important capital budgeting concepts (last 2):

[...]

Conventional versus [...]

Answer

Externalities

non-conventional cash flows.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Original toplevel document

Flashcard 1438308502796

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Important capital budgeting concepts (5):

[...]
Incremental cash flow
[...]
Externalities
[...]

Answer

Sunk cost

Opportunity cost

Conventional versus non-conventional cash flows.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Original toplevel document

Annotation 1438310862092

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Opportunity cost is the return on the best alternative use of an asset or the highest return that will not be earned if funds are invested in a particular project. For example, to continue with the bookstore example, the space to be occupied by the coffee shop is an opportunity cost - it could be used to sell books and generate a $5,000 annual net cash inflow.

status	not read	reprioritisations
last reprioritisation on		suggested re-reading day
started reading on		finished reading on

Parent (intermediate) annotation

Open it
#13; Forget sunk costs. Subtract opportunity costs. Consider side effects on other parts of the firm: externalities and cannibalization. Recognize the investment and recovery of net working capital. Opportunity cost is the return on the best alternative use of an asset or the highest return that will not be earned if funds are invested in a particular project. For example, to continue with the bookstore example, the space to be occupied by the coffee shop is an opportunity cost - it could be used to sell books and generate a $5,000 annual net cash inflow. Externalities are the effects of a project on cash flows in other parts of a firm. Although they are difficult to quantify, they should be considered. Externalities can b

Original toplevel document

Flashcard 1438311910668

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

[...] is the return on the best alternative use of an asset or the highest return that will not be earned if funds are invested in a particular project.

Answer

Opportunity cost

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
Opportunity cost is the return on the best alternative use of an asset or the highest return that will not be earned if funds are invested in a particular project. For example, to continue with the book

Original toplevel document

Annotation 1438314269964

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Negative externalities create costs for other parts of the firm. For example, if the bookstore is considering opening a branch two blocks away, some customers who buy books at the old store will switch to the new branch. The customers lost by the old store are a negative externality. The primary type of negative externality is cannibalization, which occurs when the introduction of a new product causes sales of existing products to decline.

Future cash flows represented by negative externalities occur regardless of the project, so they are non-incremental. Such cash flows represent a transfer from existing projects to new projects, and thus should be subtracted from the new projects' cash flows.

status	not read	reprioritisations
last reprioritisation on		suggested re-reading day
started reading on		finished reading on

Parent (intermediate) annotation

Open it
ted in a particular project. For example, to continue with the bookstore example, the space to be occupied by the coffee shop is an opportunity cost - it could be used to sell books and generate a $5,000 annual net cash inflow. Externalities are the effects of a project on cash flows in other parts of a firm. Although they are difficult to quantify, they should be considered. Externalities can be either positive or negative: Positive externalities create benefits for other parts of the firm. For example, the coffee shop may generate some additional customers for the bookstore (who otherwise may not buy books there). Future cash flows generated by positive externalities occur with the project and do not occur without the project, so they are incremental. Negative externalities create costs for other parts of the firm. For example, if the bookstore is considering opening a branch two blocks away, some customers who buy books at the old store will switch to the new branch. The customers lost by the old store are a negative externality. The primary type of negative externality is cannibalization, which occurs when the introduction of a new product causes sales of existing products to decline. Future cash flows represented by negative externalities occur regardless of the project, so they are non-incremental. Such cash flows represent a transfer from existing projects to new projects, and thus should be subtracted from the new projects' cash flows. Conventional versus non-conventional cash flows. A conventional cash flow pattern is one with an initial outflow followed by a s

Original toplevel document

Flashcard 1438315318540

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

[...] are the effects of a project on cash flows in other parts of a firm.

Answer

Externalities

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Original toplevel document

Flashcard 1438317677836

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Although Externalities are difficult [...], they should be considered.

Answer

to quantify

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
Externalities are the effects of a project on cash flows in other parts of a firm. Although they are difficult to quantify, they should be considered. Externalities can be either positive or negative: Positive externalities create benefits for other parts of the firm. For

Original toplevel document

Flashcard 1438320037132

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Externalities can be either [...]

Answer

positive or negative:

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Original toplevel document

Flashcard 1438325542156

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Future cash flows generated by positive externalities occur with the project and do not occur without the project, so [...]

Answer

they are incremental.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
r example, the coffee shop may generate some additional customers for the bookstore (who otherwise may not buy books there). Future cash flows generated by positive externalities occur with the project and do not occur without the project, so they are incremental. Negative externalities create costs for other parts of the firm. For example, if the bookstore is considering opening a branch two blocks away, some customers who

Original toplevel document

Flashcard 1438328687884

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Negative externalities create [...].

Answer

costs for other parts of the firm

If the bookstore is considering opening a branch nearby, some customers who buy books at the old store will switch to the new branch. The customers lost by the old store are a negative externality.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
Negative externalities create costs for other parts of the firm. For example, if the bookstore is considering opening a branch two blocks away, some customers who buy books at the old store will switch to the new branch. The customers lost by the ol

Original toplevel document

Flashcard 1438331047180

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

If a bookstore is considering opening a branch two blocks away, some customers who buy books at the old store will switch to the new branch. The customers lost by the old store are [...].

Answer

a negative externality

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
ties create costs for other parts of the firm. For example, if the bookstore is considering opening a branch two blocks away, some customers who buy books at the old store will switch to the new branch. The customers lost by the old store are a negative externality. The primary type of negative externality is cannibalization, which occurs when the introduction of a new product causes sales of existing products to decline. &#13

Original toplevel document

Flashcard 1438333406476

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

The primary type of negative externality is [...], which occurs when [...]

Answer

cannibalization

the introduction of a new product causes sales of existing products to decline.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
ookstore is considering opening a branch two blocks away, some customers who buy books at the old store will switch to the new branch. The customers lost by the old store are a negative externality. The primary type of negative externality is cannibalization, which occurs when the introduction of a new product causes sales of existing products to decline. Future cash flows represented by negative external

Original toplevel document

Flashcard 1438335765772

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Future cash flows represented by negative externalities occur [...] of the project, so they are [...].

Answer

regardless

non-incremental

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
zation, which occurs when the introduction of a new product causes sales of existing products to decline. Future cash flows represented by negative externalities occur regardless of the project, so they are non-incremental. Such cash flows represent a transfer from existing projects to new projects, and thus should be subtracted from the new projects' cash flows.<body><html>

Original toplevel document

Flashcard 1438338125068

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

How should be negative externalities cash flows treated in the capital budget?

Answer

They should be subtracted since they are not incremental

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
#13; Future cash flows represented by negative externalities occur regardless of the project, so they are non-incremental. Such cash flows represent a transfer from existing projects to new projects, and thus should be subtracted from the new projects' cash flows.<body><html>

Original toplevel document

Flashcard 1438340484364

Tags

#analyst-notes #cfa-level-1 #corporate-finance #has-images #reading-35-capital-budgeting #study-session-10

Question

A conventional cash flow pattern is one with an [...] followed by a series of inflows.

Answer

initial outflow

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
ojects to new projects, and thus should be subtracted from the new projects' cash flows. Conventional versus non-conventional cash flows. A conventional cash flow pattern is one with an initial outflow followed by a series of inflows. In a non-conventional cash flow pattern, the initial outflow can be followed by inflows and/or outflows.

Original toplevel document

Flashcard 1438342843660

Tags

#analyst-notes #cfa-level-1 #corporate-finance #has-images #reading-35-capital-budgeting #study-session-10

Question

In a non-conventional cash flow pattern, the initial outflow can be followed by [...]

Answer

inflows and/or outflows.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
A conventional cash flow pattern is one with an initial outflow followed by a series of inflows. In a non-conventional cash flow pattern, the initial outflow can be followed by inflows and/or outflows. <body><html>

Original toplevel document

Flashcard 1438348086540

Tags

#analyst-notes #cfa-level-1 #corporate-finance #has-images #reading-35-capital-budgeting #study-session-10

Question

What is this

Answer

A non-conventional cashflow

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Flashcard 1438352805132

Tags

#analyst-notes #cfa-level-1 #corporate-finance #has-images #reading-35-capital-budgeting #study-session-10

Question

What is this ?

Answer

conventional cashflow

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Annotation 1438354640140

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Some project interactions:

Independent versus mutually exclusive projects. Mutually exclusive projects are investments that compete in some way for a company's resources - a firm can select one or another but not both. Independent projects, on the other hand, do not compete for the firm's resources. A company can select one or the other or both, so long as minimum profitability thresholds are met.
Project sequencing. How does one sequence multiple projects over time, since investing in project B may depend on the result of investing in project A?
Unlimited funds versus capital rationing. Capital rationing occurs when management places a constraint on the size of the firm's capital budget during a particular period. In such situations, capital is scarce and should be allocated to the projects most likely to maximize the firm's aggregate NPV. The firm's capital budget and cost of capital must be determined simultaneously to best allocate the firm's capital. On the other hand, a firm can raise the funds it wants for all profitable projects simply by paying the required rate of return.

status	not read	reprioritisations
last reprioritisation on		suggested re-reading day
started reading on		finished reading on

Subject 2. Basic Principles of Capital Budgeting
In a non-conventional cash flow pattern, the initial outflow can be followed by inflows and/or outflows. Some project interactions: Independent versus mutually exclusive projects. Mutually exclusive projects are investments that compete in some way for a company's resources - a firm can select one or another but not both. Independent projects, on the other hand, do not compete for the firm's resources. A company can select one or the other or both, so long as minimum profitability thresholds are met. Project sequencing. How does one sequence multiple projects over time, since investing in project B may depend on the result of investing in project A? Unlimited funds versus capital rationing. Capital rationing occurs when management places a constraint on the size of the firm's capital budget during a particular period. In such situations, capital is scarce and should be allocated to the projects most likely to maximize the firm's aggregate NPV. The firm's capital budget and cost of capital must be determined simultaneously to best allocate the firm's capital. On the other hand, a firm can raise the funds it wants for all profitable projects simply by paying the required rate of return. Learning Outcome Statements b. describe the basic principles of capital budgeting; c. explain how the evaluat

Flashcard 1438355688716

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Some project interactions:

[...]
Project sequencing.
Unlimited funds versus capital rationing.

Answer

Independent versus mutually exclusive projects.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Original toplevel document

Annotation 1438358048012

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Independent versus mutually exclusive projects. Mutually exclusive projects are investments that compete in some way for a company's resources - a firm can select one or another but not both. Independent projects, on the other hand, do not compete for the firm's resources. A company can select one or the other or both, so long as minimum profitability thresholds are met.

status	not read	reprioritisations
last reprioritisation on		suggested re-reading day
started reading on		finished reading on

Parent (intermediate) annotation

Open it
Some project interactions: Independent versus mutually exclusive projects. Mutually exclusive projects are investments that compete in some way for a company's resources - a firm can select one or another but not both. Independent projects, on the other hand, do not compete for the firm's resources. A company can select one or the other or both, so long as minimum profitability thresholds are met. Project sequencing. How does one sequence multiple projects over time, since investing in project B may depend on the result of investing in project A? &#13

Original toplevel document

Flashcard 1438359096588

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Mutually exclusive projects are investments that [...]

Answer

compete in some way for a company's resources

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
Independent versus mutually exclusive projects. Mutually exclusive projects are investments that compete in some way for a company's resources - a firm can select one or another but not both. Independent projects, on the other hand, do not compete for the firm's resources. A company can select one or the other or both, so long

Original toplevel document

Flashcard 1438361455884

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

With Mutually exclusive projects a firm can select [...]

Answer

one or another but not both.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Original toplevel document

Flashcard 1438363815180

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

[...] do not compete for the firm's resources.

Answer

Independent projects

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Original toplevel document

Flashcard 1438366174476

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

A company can select one or the other or both Independent projects, so long as [...] are met.

Answer

minimum profitability thresholds

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
ts that compete in some way for a company's resources - a firm can select one or another but not both. Independent projects, on the other hand, do not compete for the firm's resources. A company can select one or the other or both, so long as minimum profitability thresholds are met. <body><html>

Original toplevel document

Annotation 1438368533772

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

How does one sequence multiple projects over time, since investing in project B may depend on the result of investing in project A?

status	not read	reprioritisations
last reprioritisation on		suggested re-reading day
started reading on		finished reading on

Parent (intermediate) annotation

Open it
other but not both. Independent projects, on the other hand, do not compete for the firm's resources. A company can select one or the other or both, so long as minimum profitability thresholds are met. Project sequencing. How does one sequence multiple projects over time, since investing in project B may depend on the result of investing in project A? Unlimited funds versus capital rationing. Capital rationing occurs when management places a constraint on the size of the firm's capital budget during a particular period

Original toplevel document

Annotation 1438370106636

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Unlimited funds versus capital rationing. Capital rationing occurs when management places a constraint on the size of the firm's capital budget during a particular period. In such situations, capital is scarce and should be allocated to the projects most likely to maximize the firm's aggregate NPV. The firm's capital budget and cost of capital must be determined simultaneously to best allocate the firm's capital. On the other hand, a firm can raise the funds it wants for all profitable projects simply by paying the required rate of return.

status	not read	reprioritisations
last reprioritisation on		suggested re-reading day
started reading on		finished reading on

Parent (intermediate) annotation

Open it
, so long as minimum profitability thresholds are met. Project sequencing. How does one sequence multiple projects over time, since investing in project B may depend on the result of investing in project A? Unlimited funds versus capital rationing. Capital rationing occurs when management places a constraint on the size of the firm's capital budget during a particular period. In such situations, capital is scarce and should be allocated to the projects most likely to maximize the firm's aggregate NPV. The firm's capital budget and cost of capital must be determined simultaneously to best allocate the firm's capital. On the other hand, a firm can raise the funds it wants for all profitable projects simply by paying the required rate of return.<body><html>

Original toplevel document

Flashcard 1438371155212

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Capital rationing occurs when management [...] on the size of the firm's capital budget during a particular period.

Answer

places a constraint

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
Unlimited funds versus capital rationing. Capital rationing occurs when management places a constraint on the size of the firm's capital budget during a particular period. In such situations, capital is scarce and should be allocated to the projects most likely to maximize the firm's agg

Original toplevel document

Flashcard 1438373514508

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

In Capital rationing , capital is scarce and should be allocated to the projects most likely to maximize the firm's [...].

Answer

aggregate NPV

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
capital rationing. Capital rationing occurs when management places a constraint on the size of the firm's capital budget during a particular period. In such situations, capital is scarce and should be allocated to the projects most likely to maximize the firm's aggregate NPV. The firm's capital budget and cost of capital must be determined simultaneously to best allocate the firm's capital. On the other hand, a firm can raise the funds it wants for all prof

Original toplevel document

Flashcard 1438376135948

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

The firm's capital budget and [...] must be determined simultaneously to best allocate the firm's capital.

Answer

cost of capital

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
hen management places a constraint on the size of the firm's capital budget during a particular period. In such situations, capital is scarce and should be allocated to the projects most likely to maximize the firm's aggregate NPV. The firm's capital budget and cost of capital must be determined simultaneously to best allocate the firm's capital. On the other hand, a firm can raise the funds it wants for all profitable projects simply by p

Original toplevel document

Flashcard 1438378495244

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

A firm can raise the funds it wants for all profitable projects simply by [...].

Answer

paying the required rate of return

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
ximize the firm's aggregate NPV. The firm's capital budget and cost of capital must be determined simultaneously to best allocate the firm's capital. On the other hand, a firm can raise the funds it wants for all profitable projects simply by paying the required rate of return.<body><html>

Original toplevel document

Flashcard 1438397631756

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10 #subject-2-basic-principles-of-capital-budgeting

Question

Learning Outcome Statements

b. [...]

c. explain how the evaluation and selection of capital projects is affected by mutually exclusive projects, project sequencing, and capital rationing;

Answer

describe the basic principles of capital budgeting;

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Subject 2. Basic Principles of Capital Budgeting
t allocate the firm's capital. On the other hand, a firm can raise the funds it wants for all profitable projects simply by paying the required rate of return. Learning Outcome Statements b. describe the basic principles of capital budgeting; c. explain how the evaluation and selection of capital projects is affected by mutually exclusive projects, project sequencing, and capital rationing; &#13

Annotation 1438400253196

Project sequencing

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Many projects are sequenced through time, so that investing in a project creates the option to invest in future projects. For example, you might invest in a project today and then in one year invest in a second project if the financial results of the first project or new economic conditions are favorable. If the results of the first project or new economic conditions are not favorable, you do not invest in the second project.

status	not read	reprioritisations
last reprioritisation on		suggested re-reading day
started reading on		finished reading on

Subject 2. Basic Principles of Capital Budgeting
n select one or another but not both. Independent projects, on the other hand, do not compete for the firm's resources. A company can select one or the other or both, so long as minimum profitability thresholds are met. Project sequencing. How does one sequence multiple projects over time, since investing in project B may depend on the result of investing in project A? Unlimited funds versus capital rati

Flashcard 1438402612492

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

Many projects are [...], so that investing in a project creates the option to invest in future projects.

Answer

sequenced through time

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
Many projects are sequenced through time, so that investing in a project creates the option to invest in future projects. For example, you might invest in a project today and then in one year invest in a second project if the

Original toplevel document

Flashcard 1438404971788

Tags

#italian #italian-grammar

Question

Invariable nouns are nouns that have the same form for [...)

Answer

both singular and plural

un film, dei film ‘a film, some films’, or for both masculine and feminine, un artista, un’artista ‘an artist’.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
Invariable nouns are nouns that have the same form for both singular and plural, un film, dei film ‘a film, some films’, or for both masculine and feminine, un artista, un’artista ‘an artist’. An invariable adjective is one that does not change form to agree with t

Original toplevel document (pdf)

cannot see any pdfs

Flashcard 1438407331084

Tags

#italian #italian-grammar

Question

An invariable adjective is one that [...], whether masculine or feminine, singular or plural

Answer

does not change form to agree with the noun

un vestito rosa ‘a pink dress’, una giacca rosa ‘a pink jacket’; dei pantaloni rosa ‘some pink trousers’; delle calze rosa ‘some pink stockings’.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
y>Invariable nouns are nouns that have the same form for both singular and plural, un film, dei film ‘a film, some films’, or for both masculine and feminine, un artista, un’artista ‘an artist’. An invariable adjective is one that does not change form to agree with the noun, whether masculine or feminine, singular or plural: un vestito rosa ‘a pink dress’, una giacca rosa ‘a pink jacket’; dei pantaloni rosa ‘some pink trousers’; delle calze rosa ‘some pink

Original toplevel document (pdf)

cannot see any pdfs

Flashcard 1438426205452

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

The purpose of the post-audit process is improving the accuracy of [...] by adopting improved forecasting methods.

Answer

capital budgeting forecasts

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Original toplevel document

Flashcard 1438431710476

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

The post-audit process is difficult because forecasts are always [...]

Answer

"wrong" to some degree

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Original toplevel document

Flashcard 1438433807628

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

The post-audit process is difficult because

forecasts may be "wrong" due to [...] no longer [...]

Answer

poor decisions made by executives or managers no longer employed by the company.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Original toplevel document

Flashcard 1438436691212

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

The post-audit process is difficult because forecasts may seem "wrong" when viewed [...]

Answer

in isolation

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Original toplevel document

Flashcard 1438441409804

Tags

#analyst-notes #cfa-level-1 #corporate-finance #reading-35-capital-budgeting #study-session-10

Question

An expansion project is a project where a firm invests in ______.

A. new assets to increase sales
B. developing new products to replace old products
C. research and development

Answer

Correct Answer: A

Expansion projects deal with investment in new assets to increase firms' sales.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Edited, memorised or added to reading queue

on 03-Jan-2017 (Tue)

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document (pdf)

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

pdf

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

pdf

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document

Parent (intermediate) annotation

Original toplevel document