Can you help me understand this Accounting question?
1. Operating and Cash Cycles
Discuss the operating and cash cycles, and why they it is important for a financial manager to have a good understanding of how cash and operating cycles impact business operations.
2. Time Value of Money
If you won the lottery and had the choice of a lump-sum payoff or an annuity payoff, what factors would you consider besides the implied interest rate (indifference interest rate) in selecting the payoff style? Provide a quantitative example to illustrate your choice.
3. Payback Period
Explain the payback period model and its two significant weaknesses. How does the discounted payback period model addresses one of the problems?
4. Bond Features
What are some of the features that could be included with a bond prospectus that may have an impact on the yield of a new bond issue?
5. Cash Flow
What is an incremental cash flow for a project? What concepts do we need to examine to help understand how to estimate the incremental cash flow of a project? What else is needed for deciding whether or not to choose a project?
