How long does it take to recover the initial investment?

Q: Can I calculate the Rate of Return using the NPV/initial investment? Why or why not?

A: When an investment is made in a certain project, its future outcomes are measured based on the money…

Q: What is investment timing option?

A: Option with reference to investment or project refers a significant option that can affect the…

Q: what is the discounted payback period for the investment?

A: Payback Period is the calculation of periods or years within which cost of investment is recovered.…

Q: what is apr? do we use APR or EAR when we are calculating the present value of investment? is APR…

A: The term APR stands for Annual percentage rate. It reflects the amount of simple interest being owed…

Q: What is a satisfiable investment? When the present value of benefits surpasses the cost of an…

A: This question explains about the present value of benefits surpasses and the cost of an investment…

Q: When do the firm expect to recover the initial investment?

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

Q: Is it worth the effort to estimate daily project cash flows?  Would doing so be helpful in the…

A: Cashflows are usually estimating yearly and then discounted at an appropriate discount rate

Q: Payback period is the time in which the initial cost of an investment is expected to be recovered…

A: The payback period is the time it takes to repay the cost of an investment or to reach the breakeven…

Q: Which of the following is true of the cash payback period? a.the longer the payback, the longer the…

A: Payback period is the period under which the amount of investment is expected to be recovered.…

Q: Why would the average rate of return differ from the internal rate of return on the same project

A:

Q: ta. What is the project's payback?

A: It refers to the time period that is required to get an amount invested in a project with some…

Q: What are the benefits and corresponding risks of Financial Investment?

A: Financial Investments are investments that are made with the expectation to receive future financial…

Q: Why is it necessary to determine how long you can expect to reap benefit from the investment?

A: Individuals as well as firms often make investment and specify the time limit for which this…

Q: If the net present value of a proposed investment is positive

A: Net present value method (NPV): Net present value method is the method which is used to compare the…

Q: What refers to the interest rate at which the present work of the cash flow on a project is zero of…

A: The RoR can be used with any asset that was purchased at some point in the past and will provide…

Q: How can we aggregate the risk over the project life in terms of net present value?

A: It is an incorporation of the risk level of the project over the life of the in terms of NPV by way…

Q: How long would it take to recover the initial investment?

A: Initial investment- It refers to the total cash expenditure on a capital of a project of the…

Q: How can we reduce investment risks by asset diversification?

A: Answer: Diversification is nothing but the strategy that reduces the risk by allocating assets to…

Q: What do you know about the mathematical value of the internal rate of return of a project under each…

A: Internal rate of return(IRR) is rate at which net present value(NPV) of project is equal to zero or…

Q: What are the best short-term and long-term investment strategies going forward into the future?

A: Short term investment strategy – Those investment that are usually traded for upto a span of 3 years…

Q: What serious drawbacks do the much-used payback method of investmentscreening have?

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

Q: Explain Target Return on Investment?

A: Investments are done to get the return on the same. Generally, investments are done when an…

Q: Consider IRR on Incremental Investment when Initial IRR Flows are equal?

A: Answer: IRR is a measure in capital budgeting used to measure the value of the predicted…

Q: What is the incremental profit? To get a rough project's profitability, what is the project's…

A: Profit represents the economic benefit realized when income from a business activity exceeds the…

Q: One must know the discount rate of an investment project to compute its: NPV, IRR, PI and payback…

A: The various tools employed in capital budgeting are Net present value (NPV), Profitability Index…

Q: Which project has no rate of return?

A: Answer: IRR is a measure in capital budgeting used to measure the value of the predicted…

Q: When does the project reach the payback point?

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

Q: What are the shortcomings of the internal rate of return criterion? How do you make an investment…

A: Internal rate of return is the discount rate at which the present value of the future cash flow and…

Q: What company is better in short term investment?

A: Answer:-  Investment meaning:- An asset or object purchased with the intention of generating income…

Q: Which of the following would cause a project to have a lower net present value, thereby making the…

A: Capital budgeting techniques include: Net Present Value Profitability Index Internal Rate of Return…

Q: How can I calculate the NPV of an investment?

A: Net present value:- Net present value is the investment evaluation technique, where we evaluate…

Q: How can we measure the true rate of return of any internal portion of an investment project?

A: True rate of return means real rate of return on investment. It is the actual return earned on an…

Q: What is the main determinant of the level of investment?

A: An investment is simply a financial instrument formed with the goal of allowing money to grow. One,…

Q: What will an investment or a series of investment be worth after a period of time?

A: The time value of money states that an amount of money is worth more now than it will be in the…

Q: Which investment criteria answers the question: "How quickly do we recover our investment, in…

A: Pay back Period is that under which we will received / Recover the investment amount for starting…

Q: What is meant by the incremental cost of borrowing additional funds?

A: Incremental cost as the name indicates is the additional cost which a borrower will incur if the…

Q: Calculate internal Rate of Return of the project. Should the project be accepted? If reinvestment…

A: Internal rate of return is the rate at which the present value of cash inflows are equal to present…

Q: How do we use the computed figure when evaluating an investment alternative?

A: There are various computations available for evaluation of investment alternatives.  The rate of…

Q: The payback period for the investment would be: (Ro

A: Capital budgeting: capital budgeting is a decision-making method done by management accountants in…

Q: Define the discounted payback period as the number of years required to recover the investment from…

A: Discounted Payback Period: Discounted payback period (DPP) is the span of time it takes (in years)…

Q: Is the incremental cost of borrowing additional funds affected significantly by the early repayment…

A: Incremental cost of borrowing additional funds : For determining the total cost of borrowing the…

Q: What is the relationship between return on capital investment and the risk associated with the…

A: Return on invested capital is referred as an amount of the funds of the corporation, which helps in…

Q: What is the project’s payback period?

A: Payback period: A project's payback period can be described as the number of years to recover the…

Q: What is the project's cash flow?

A: Statement of cash flow: It refers to a financial statement that shows all the cash payments and…