Discuss the advantages of break-even time over the payback period. List two conditions under which payback period and break-even time are similar.

Q: 1. What is the payback period

A: Payback Period is the Period the company is able to recover the investment it has made for a project…

Q: Explain briefly two advantages and two disadvantages of payback.

A: Payback Period The payback period is the time taken by a particular investment project to recover…

Q: Create a chart reflecting the conventional payback period?

A: The question is based on the calculation of payback period.

Q: What happens if the payback period is within the acceptable range?

A: The payback period alludes to what extent it takes for a speculator to hit breakeven to recoup the…

Q: When the contribution margin per unit increases assuming all other factors remain constant. The…

A: Contribution margin per unit : The contribution margin is defined as the amount of which the sales…

Q: Define stepped-up strike (or exercise) price

A: Strike price is the price at which an investor buys and sells the underlying securities. Generally…

Q: What causes the marginal rate of return to change over time?

A: Introduction: Marginal rate of return can be defined as the return attained or earned by holding a…

Q: Break-even value using the contribution margin ratio

A: (Since you have posted a multi-part question, we will solve the first three parts for you. For the…

Q: Explain payback period

A: Answer: Payback period is nothing but the time a company gets back the money that is originally…

Q: true or false, An increase in total fixed costs lowers the break-even point.

A: Formula: Break even point = Fixed costs / Contribution margin per unit. Contribution margin per unit…

Q: Ive ye is the payback period for - If their acceptance peric

A: The Payback period is the amount of time needed to earn back the cost of an investment. This method…

Q: Explain an example of payback how to calculate.

A: A payback period is the amount of time needed to earn back the cost of an investment. The length of…

Q: Can you please help me solve for the Return on Investment and Break-Even Point based on the data…

A: Return on Investment measures of the performance of an Investment. It tells us the return we have…

Q: Describe the two forms that the calculation of the payback period can take?

A: The payback period alludes to what extent it takes for a speculator to hit breakeven to recoup the…

Q: when the contribution margin ratio increases

A: Option A is wrong because break-even point decreases when the contribution margin ratio increases.…

Q: What are the shortcomings of the payback period criterion? Which of these shortcomings are accounted…

A: Payback method is a manner of evaluating capital projects which computes the time taken by the cash…

Q: Describe the strengths and weakness of payback method.

A: Definition:   Payback method: Payback method refers to the method which measures the time period…

Q: explain why payback period is not a preferred method

A: The payback period is a period in which the total costs of an investment are recovered through cash…

Q: Calculate the Discounted Payback Period.

A: Information Provided: Tax rate = 30% Cost of capital = 15% EBIT = 15% of sales Interest expense = 5%…

Q: Distinguish the benefits of break-even time over payback time. Indicate two instances in which the…

A: This question explains about Indicate two instances in which the payback duration and break-even…

Q: Projects with _____are preferred.   O a. Lower payback period.   O b. Normal payback period.…

A: The payback period is a concept of capital budgeting whereby the number of periods is given after…

Q: Which ones identify the disadvantages of the payback rule? A. Very simple and easy to apply. B.…

A: Solution: Payback period is one of the decision making criteria in capital budgeting. It measures…

Q: What is the simple payback period for the wingtips? What is the discounted payback period?

A: The payback period refers to the time consumed to recover the cost which is incurred on investment…

Q: 1. The most likely strategy to reduce the break-even point would be to a. Increase both the fixed…

A: A Break-even point is a point at which a company is able to cover all its expenses with the present…

Q: Define the term Discounted-Payback Period?

A: The payback period states the number of years that is taken by the project to recover the investment…

Q: The modified internal rate of return (MMIR) is the discount rate that forces the _____.

A: Explanation: Modified internal rate of return can be better understood from the below formula, where…

Q: List the advantages and disadvantages of the payback method.

A: Payback method is a capital budgeting method which helps to evaluate an investment based on the time…

Q: The most likely strategy to reduce the breakeven point would be to fixed costs and contribution…

A: Break-even point is computed to ascertain the revenue/sale units required, for absorption of all the…

Q: Explain the payback period model and its two significant weaknesses. How does the discounted payback…

A: The payback period one of  the method of capital budgeting. It shows the required time taken to…

Q: What are the features of the discounted payback period

A: DPP is the total time taken for the initial amount to equal to be the amount of discounted value of…

Q: Illustrate the concept of perpetual replacement for one- and two-year replacement cycles?

A: The concept of replacement for 1-and 2- year replacement cycle. Residual value is given after the…

Q: What formula do you use to calculate the payback period?

A: Capital budgeting is a process to determine the worth of the project in which the company wants to…

Q: ck Period Meth

A: In capital budgeting, the payback period is the amount of time it takes for the return on an…

Q: How can we determine the Break-Even Resale Value?

A: How to determine the Break -Even Resale Value?

Q: What is the project’s discounted payback period?

A: Discount rate: It is the interest rate to determine the PV of future cash inflows from the project

Q: Why Pay back period method is not as effective as NPV?

A: Payback method  It doesn't consider account inflation as well as the cost of capital. It ignores…

Q: ow do you find the break even point? without knowing the contribution margin per unit

A: Break-even point means the sale condition where no profit no loss incurred. Break-even point is…

Q: What are the shortcomings of the payback period?

A: Payback period: The payback period assesses the time period required to recover the initial…

Q: Briefly explain the problems associated with the payback method.

A: Capital budgeting is referred as the process of decision making which is used by companies to…

Q: Solve the problem by payback period.

A: Pay back period method is a method of capital budgeting. It is the time required for the project…

Q: Distinguish the benefits of break-even time against payback time. Indicate two instances where the…

A: Discuss the merits of the break-even point versus the point at which a company reaches…

Q: What is the difference between the regularand discounted payback periods?

A: The Regular Payback period is one of the capital budgeting techniques. It refers to the time period…

Q: What are the two main drawbacks of the payback method?

A: Payback period is the method in capital budgeting which refers to the time needed to recoup the…