Which one of the following methods of analysis ignores the time value of money? Net present...
Which one of the following methods of analysis ignores the time value of money?
Net present value
Internal rate of return
Discounted cash flow analysis
Payback
Profitability index
Homework Answers
Payback period ignores the time value of money - this is the disadvantage of payback period.
The method does not take into account the time value of money, where cash generated in later periods is work less than cash earned in the current period. A variation on the payback period formula, known as the discounted payback formula, eliminates this concern by incorporating the time value of money into the calculation.
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Which one of the following methods of analysis ignores the time
value of money?
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The conventional payback period ignores the time value of money, and this concems Blue Hamster's CFO....
The conventional payback period ignores the time value of money, and this concems Blue Hamster's CFO. He has now asked you to compute Delta's discounted payback period, assuming the company has a 10% cost of capital. Complete the following table and perform any necessary calculations. Round the discounted cash flow values to the nearest whole dollar, and the discounted payback period to two decimal places. For full credit, complete the entire table. (Note: If your answer is negative, be sure...
The conventional payback period ignores the time value of money, and this concerns Blue Hamster's CFO. He has now a...
The conventional payback period ignores the time value of money, and this concerns Blue Hamster's CFO. He has now asked you to compute Delta's discounted payback period, assuming the company has a 8% cost of capital. Complete the following table and perform any necessary calculations. Round the discounted cash flow values to the nearest whole dollar, and the discounted payback period to the nearest two decimal places. For full credit, complete the entire table. Year 0 -5,500,000 Year 1 $2,200,000...
The conventional payback period ignores the time value of money, and this concems Blue Hamster's CFO. He has now asked...
The conventional payback period ignores the time value of money, and this concems Blue Hamster's CFO. He has now asked you to compute Delta's discounted payback period, assuming the company has a 10% cost of capital. Complete the following table and perform any necessary calculations. Round the discounted cash flow values to the nearest whole dollar, and the discounted payback period to two decimal places. For full credit, complete the entire table. (Note: If your answer is negative, be sure...
Which of the following methods does not involve an interest rate from any source? Payback period...
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Which of the following capital budgeting techniques consider the cost of capital? (1) Net Present Value...
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Which of the following methods of project analysis are biased towards short-term projects? O Payback and profitability index O Profitability index and internal rate of return O Discounted payback and payback O Profitability index and discounted payback O Net present value and payback
The conventional payback period ignores the time value of money, and this concems Blue Hamster's CFO. He has now asked you to compute Delta's discounted payback period, assuming the company has a 10% cost of capital. Complete the following table and perform any necessary calculations. Round the discounted cash flow values to the nearest whole dollar, and the discounted payback period to two decimal places. For full credit, complete the entire table. (Note: If your answer is negative, be sure...
The conventional payback period ignores the time value of money, and this concerns Blue Hamster's CFO. He has now asked you to compute Delta's discounted payback period, assuming the company has a 8% cost of capital. Complete the following table and perform any necessary calculations. Round the discounted cash flow values to the nearest whole dollar, and the discounted payback period to the nearest two decimal places. For full credit, complete the entire table. Year 0 -5,500,000 Year 1 $2,200,000...
The conventional payback period ignores the time value of money, and this concems Blue Hamster's CFO. He has now asked you to compute Delta's discounted payback period, assuming the company has a 10% cost of capital. Complete the following table and perform any necessary calculations. Round the discounted cash flow values to the nearest whole dollar, and the discounted payback period to two decimal places. For full credit, complete the entire table. (Note: If your answer is negative, be sure...
Which of the following methods does not involve an interest rate from any source? Payback period O Profitability index Net present value O Internal rate of return Discounted payback
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