What is Free Cash flow , NPV vs IRR , solvency ratios , different between depreciation and depletion,

Question

Accepted Answer

Free cash flow, NPV vs IRR, solvency ratios, depreciation vs depletion

Free cash flow is the amount of cash a company generates after accounting for all expenses and investments in capital assets.
NPV (Net Present Value) and IRR (Internal Rate of Return) are both used in capital budgeting to evaluate the profitability of an investment.
Solvency ratios measure a company's ability to meet its long-term debt obligations.
Depreciation is the allocation of the cost of tangible assets over their useful life, while depletion is the allocation of the cost of natural resources.

Popular interview questions of Senior Associate