Homework Answers
Incorrect
The answer is
1,2,3 and 5
Discounted payback period also uses cost of capital as cash flows are discounted under the method
Payback period method does not take into consideration the time value of money and hence, does not use the cost of capital
Add Answer to:
Correct or incorrect?
Which of the following capital budgeting techniques consider the cost of capital? (1)...
Which of the following capital budgeting techniques consider the cost of capital? (1) Net Present Value...
Which of the following capital budgeting techniques consider the cost of capital? (1) Net Present Value (2) Internal Rate of Return (3) Profitability Index (4) Payback Period (5) Discounted Payback Period Options: 1) and (2) (1) (1) and (2) and (3) (1) and (2) and (3) and (5)
Which of the following capital budgeting techniques consider the cost of capital? (1) Net Present Value...
Which of the following capital budgeting techniques consider the cost of capital? (1) Net Present Value (2) Internal Rate of Return (3) Profitability Index (4) Payback Period (5) Discounted Payback Period Question 11 options: (1) and (2) and (3) and (5) (1) and (2) (1) (1) and (2) and (3)
Which of the following capital budgeting techniques consider the cost of capital? (1) Net Present Value...
Which of the following capital budgeting techniques consider the cost of capital? (1) Net Present Value (2) Internal Rate of Return (3) Profitability Index (4) Payback Period (5) Discounted Payback Period Question 14 options: (1) and (2) (1) (1) and (2) and (3) (1) and (2) and (3) and (5)
Prior to beginning work on this discussion, please read the article Capital Investment Appraisal Techniques: A Survey of...
Prior to beginning work on this discussion, please read the article Capital Investment Appraisal Techniques: A Survey of Current Usage (Links to an external site.)Links to an external site. by Sangster (1993). After setting the company’s goals, managers evaluate capital investment projects and decide which should be funded. Suppose a company has four different capital budgeting projects from which to choose but has constrained funds and cannot implement all of the projects. The following table contains information about four projects...
5. Which of the following is/are correct? A. If the salvage value is the same as...
5. Which of the following is/are correct? A. If the salvage value is the same as the book value of the asset, then there is a tax effect. B. Book value = initial cost - accumulated depreciation C. After-tax salvage = salvage - Tax Rate x (salvage - book value) D. Both B and C 6. ________ is the most important alternative to Net Present Value. A. IRR B. Payback Method C. Average Accounting Return D. Discounted Payback 7. The...
1. The most popular capital budgeting techniques used in practice to evaluate and select projects are...
1. The most popular capital budgeting techniques used in practice to evaluate and select projects are payback period, Net Present Value (NPV), and Internal Rate of Return (IRR). 2. Payback period is the number of years required for a company to recover the initial investment cost. 3. Net Present Value (NPV) technique: NPV is found by subtracting a project’s initial cost of investment from the present value of its cash flows discounted using the firm’s weighted average cost of capital....
Capital Budgeting: Homework 1. Waste Management has a WACC of 12 percent and it is considering a project with a cost of...
Capital Budgeting: Homework 1. Waste Management has a WACC of 12 percent and it is considering a project with a cost of $52,125. The project’s expected net cash inflows are $12,000 per year for 8 years. What is the project’s payback period? What is the project’s net present value (NPV)? What is the profitability index? What is the project’s internal rate of return (IRR)? What is the project’s modified internal rate of return (MIRR)?
Which capital budgeting metric does not account for time value of money? Group of answer choices...
Which capital budgeting metric does not account for time value of money? Group of answer choices Internal rate of return (IRR). Net present value (NPV). Profitability Index. Payback period. All of these incorporate time value of money in their calculation. PreviousNext
Please use Excel to solve! Ne Present Value and Other Capital Budgeting Measures 5. Consider a...
Please use Excel to solve!
Ne Present Value and Other Capital Budgeting Measures 5. Consider a project that has the following cash flows: initial cash flow (t-0) --$100,000; cash flows years 1 to 5 (t-1-5) - $10,000 per year, cash flows years 6 to 10 (t-6-10) - $20,000 per year. If the required return on the project is 6%, calculate the following: a. Internal Rate of Return (IRR)? b. Net Present Value (NPV)? c. Profitability index (PI)? d. Payback period?
Alice Werd is a new project analyst; he is working on capital budgeting analysis of two...
Alice Werd is a new project analyst; he is working on capital budgeting analysis of two mutually exclusive projects. The followings are the cash flow forecasts for both the projects years Project A Expected Cash flows Project B Expected Cash flows 0 (1000,000) ($900,000) 1 50000 650,000 2 200,000 650,000 3 600,000 550,000 4 1000,000 300,000 5 1500,000 100,000 The following metrics presents the key information based on capital budgeting indicators. For purposes of analysis, he plans to use a...
Please use Excel to solve!
Ne Present Value and Other Capital Budgeting Measures 5. Consider a project that has the following cash flows: initial cash flow (t-0) --$100,000; cash flows years 1 to 5 (t-1-5) - $10,000 per year, cash flows years 6 to 10 (t-6-10) - $20,000 per year. If the required return on the project is 6%, calculate the following: a. Internal Rate of Return (IRR)? b. Net Present Value (NPV)? c. Profitability index (PI)? d. Payback period?
Most questions answered within 3 hours.
-
A coach uses a new technique to train gymnasts. Seven
gymnasts were randomly selected and their...
asked 22 minutes ago -
While rotating the tires on your car you notice a rock [mass =
0.1 Kg] stuck...
asked 2 hours ago -
Using MARS simulator, write MIPS programs according to
the following scenarios: Receive a positive integer number...
asked 4 hours ago -
An object in front of a concave mirror has a real image that is
11.5 cm...
asked 4 hours ago -
Consider the reaction, C3 H8 + O2 --> CO2 + H2O. How many
moles of O2...
asked 6 hours ago -
You and your opponent both roll a fair die. If you both roll the
same number,...
asked 6 hours ago -
In a study of the accuracy of fast food drive-through orders,
Restaurant A had 257 accurate...
asked 6 hours ago -
Identify and describe in detail the four categories of
institutions that could be included in a...
asked 6 hours ago -
In python
class Customer:
def __init__(self, customer_id, last_name, first_name, phone_number, address):
self._customer_id = int(customer_id)
self._last_name =...
asked 6 hours ago -
What is an example of a limitation in implementing a new
ERP system and how it...
asked 6 hours ago -
In a section of 9.7cm of an artery with a radius of 2.6mm there
is a...
asked 6 hours ago -
the two carboxylic acid groups of aspartic acid have different
acidities with pKa values of 2.1...
asked 6 hours ago