The payback method is often criticized because it ignores the time value of money and cashflows...
The payback method is often criticized because it ignores the time value of money and cashflows after the payback period has been reached. How could a simple payback calculation be used to compare with projects that have been evaluated by using the net present value method?
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The payback method is often criticized because it ignores the
time value of money and cashflows...
Generally speaking the payback method for selecting investments should not be used because? A. it ignores...
Generally speaking the payback method for selecting investments should not be used because? A. it ignores the time value of money B. it ignores all cash flows after the payback period C. it is just too simple to be used by smart people like ourselves D. A and B above
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 Cash Payback Method of Capital Investment Analysis has both positive and negative aspects. Which is...
The Cash Payback Method of Capital Investment Analysis has both positive and negative aspects. Which is not one of them? It is simple to use It analyzes cashflows It ignores cashflows after the payback period It limits the time used to determine cash paybacks
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...
1.) The conventional payback period ignores the time value of money, and this concerns Green Caterpillar’s...
1.) The conventional payback period ignores the time value of money, and this concerns Green Caterpillar’s CFO. He has now asked you to compute Alpha’s discounted payback period, assuming the company has a 9% 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...
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
Which method provides more confidence, the payback method or the net present value method? A) Payback...
Which method provides more confidence, the payback method or the net present value method? A) Payback because it provides a good timetable. B) Payback because it tells you when you break even. C) Net present value because it considers all inflows and outflows and the time value of money. D) Net present value because it does not need to use cost of capital.
1. If a manager were concerned with the time value of money, from which two capital...
1. If a manager were concerned with the time value of money, from which two capital budgeting methods should the manager choose? Multiple Choice IRR or Payback. BET or IRR. BET or Payback. NPV or ARR. NPV or Payback. 2. Restating future cash flows in terms of present values and then determing the payback period using these present values is known as: Multiple Choice Break-even time (BET) Internal rate of return method. Accounting rate of return method. Net present value...
What is meant by the term time value of money? - Why is the net present...
What is meant by the term time value of money? - Why is the net present value method superior to other methods such as the payback and simple rate of return methods?
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...
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