The advantage(s) of the discounted payback method over the payback method of project analysis include: I. ease of use II. liquidity bias III. arbitrary cutoff point IV. the consideration of time value of money V. works well for research and development projects Multiple Choice I, II, III, IV and V III and V only IV only I, II, III and V only III only

Q: 1. The payback criterion for capital investment decisions a. is conceptually superior to the IRR…

A: The payback criteria is that capital budgeting tool in which we consider the length of time that it…

Q: a) A) Calculate the net present value of the investment. Please interpret with the reasons whether…

A: Net present value is present value of future cash flows.

Q: Pls help with below homework.

A: Payback period refers to the amount of time it takes for a business or firm to recover the initial…

Q: Please explain why the net present value (NPV) method is preferred over the payback method when…

A: NPV method is preferred over payback method because of following reasons 1. NPV method shows project…

Q: The internal rate of return method assumes that a project's cash flows are reinvested at the:

A: The internal rate of return is a financial analysis tool that is used to estimate the profitability…

Q: The conflicts in project ranking in capital budgeting as per NPV and IRR may arise because of:…

A: Time value of money:   It is a concept that states the money worth we have at present will be more…

Q: Which of the following statements is correct regarding the payback method? Takes account of…

A: Payback period is a tool of capital budgeting used to evaluate projects and investments.

Q: Payback and Internal Rate of Return: A project has perpetual cash flows of C per period, a cost of…

A: Payback period is the recovery period of the initial investment of the project. Company will check…

Q: Which of the following statements is / are TRUE about the payback period method of investment…

A:

Q: Why the payback method is often considered inferior to discounted cash flow in capital investment…

A: Payback period is capital budgeting technique which tells how much time will it take for Ann…

Q: You have determined the profitability of a planned project by finding the present value of all the…

A: We determine the profitability of project by discounting the future cash flows with appropriate…

Q: Traditional NPV analysis usually does not address the decisions that managers have after a project…

A: Capital budgeting techniques are used to determine whether the investment is profitable or viable.…

Q: Which of the statements below is TRUE regarding capital budgeting? O A. Capital budgeting deals with…

A:

Q: Which of the above statements are correct?

A: Net Present Value: It is the present value of the annual cash flows and the initial cost of the…

Q: Which of the following is not a capital budgeting technique? Select one: a. Net present value b.…

A: Capital budgeting: Capital budgeting is the technique used for analyzing the investment in long term…

Q: Which one of the following statements is correct concerning the payback rule?   a. The payback…

A: Answer -   Payback Period -  The payback period is the amount of time it will take to recover the…

Q: Which of the following is NOT a disadvantage of the Payback Period project evaluation method?…

A: Payback period is the number of years required to get back the initial investment made in a capital…

Q: hich methods of evaluating a capital investment project ignore the time value of Multiple Choice Net…

A: A Capital Investment project refers to the expenses involved in a project which will eventually help…

Q: Which of the following is correct?

A: The payback period is the time duration taken to reap back the amount invested in the project. The…

Q: Which of the following statements is CORRECT? O a. The NPV profile graph for a normal project will…

A: The net present value method is an important technique of capital budgeting and the time value of…

Q: Which of the following is/are true for the average accounting return method of project analysis? I.…

A: Average Accounting Rate of return is used for capital budgeting decision for a project. The Average…

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: A situation in which taking one investment prevents the taking of another is(are) called: O Net…

A: In capital budgeting decisions, there are three types investment decision of projects (a) dependent…

Q: One of the benefit of the pay back period is that it focuses on the timing of the project`s benefits…

A: Payback period is a time taken to recover initial investment

Q: Which of the following statements is CORRECT? Assume that the project being considered has normal…

A: Internal Rate-of-Return is discount rate that makes NPV(Net Present Value) zero for an investment…

Q: Which statemen is true?   A.   IRR and NPV always lead to the same decision about projects.…

A: A. IRR and NPV always lead to the same decision about projects.- False (Reason- When comparing two…

Q: The project is accepted اخترأحد الخيارات a. If the profitability index is zero b. if the…

A: Since, you asked multiple questions, we will answer first question for you as per guideline. Kindly…

Q: b. Discounted payback ou have to comment and suggest to the management which project to choose nd…

A: Given, Initial Investment = 15000 Cost of capital = 5.005%

Q: Describe and explain the significance of each of the following: payback period, internal rate of…

A: Payback Period: A project’s payback period is the number of periods required for the project’s cash…

Q: 3. Which of the following statements is CORRECT? Assume that the project being considered has normal…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: Which of the following characteristics represent an advantage of the internal rate of return…

A: Internal rate of return (IRR) is the modern technique of capital budgeting whereas accounting rate…

Q: In calculating Net Present Value (NPV), which one of the following is not an example of a relevant…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Which of the following statements is CORRECT? Group of answer choices To find the MIRR, we discount…

A: MIRR is given by  PV of cost = TV/(1+MIRR)n Where TV is the future value of cash inflows compounding…

Q: a. What is the typical discount rate used with the Net Present Value (NPV) when project risk is the…

A: a) The rate of return the stockholders anticipate to get, or the rate at which the firm borrows,…

Q: The ARR has one specific advantage not possessed by the payback period in that it a.considers the…

A: Definition:

Q: a. If your decision rule is to accept the project with the greater IRR, which project should you…

A: Net present value  is the difference between the present value of cash inflows and the present value…

Q: O One can use the IRR rule for investment decision making without knowing the discount rate O The…

A: Question 2:   The concerned question belongs to Time value of money where different methoda are used…

Q: Examine the following statements. (i) Payback period method measure the true profitability of a…

A: Time value of money is a concept that helps in determining the value of future cash flows…