User Account

All Pages

Approach of using payback methods

Assignment Help Finance Basics
Reference no: EM132566367

Suppose a firm relies exclusively on the payback or discounted payback period methods when making capital budgeting decisions. What benefit does the approach of using payback methods provide and what pitfalls does this approach have?

Reference no: EM132566367

Questions Cloud

When profit on sale of fixed assets arises : When Profit on sale of fixed assets arises? Cumulative depreciation value is more than the current depreciated value of the asset
Implementing change within an organization : What types of obstacles/objections do leaders face from stakeholders when implementing change within an organization?
Find the intrinsic values of the put options : Find the value of the two put options using the Binomial Option Pricing Model. Also, compute their respective time values.
Organization is responding to change dynamics : Discussing how well the organization is responding to the change dynamics. Describe the organization and the change to which it is responding.
Approach of using payback methods : What benefit does the approach of using payback methods provide and what pitfalls does this approach have?
Causes of conflicts between the irr and npv : What are two possible causes of conflicts between the IRR and NPV for mutually exclusive projects?
What are the elements of emotional intelligence : One of the five elements of emotional intelligence is self-awareness. Explain why emotional intelligence is crucial for effective leadership.
Required to have health insurance : Should everyone be required to have health insurance, much as drivers are required to have auto insurance?
How you feel about using touch and hand-mediated therapies : How do you feel about using touch and hand-mediated therapies as healing interventions? Submit a maximum of three paragraphs Using 3 Nursing reference article.

Reviews

Write a Review

Finance Basics Questions & Answers

  How much will she need to save each year

a) How much will she need to save each year to have $25,000 to give to Randy? b) If she is to be fair to Susan,how much should she give Susan when she reaches

  Why is the price of a big mac not the same in every country

Using the most recent index, which country has the most expensive Big Macs? Which country has the cheapest Big Macs? Why is the price of a Big Mac not the same in every country?

  Which investment has the least amount risk coefficient of

which investment has the least amount risk?a coefficient of variation 11 standard deviation 200b standard deviation

  What is the present value of this cash flow pattern

If the appropriate discount rate is 9.94 percent per year, what is the present value of this cash flow pattern?

  Evaluate the constant growth rate in perpetuity

Cell Phone Inc. is a cellular firm that reported net income of $50 million in the most recent financial year.

  Nbspa 7 percent bond has a yield to maturity of 675

nbspa 7 percent bond has a yield to maturity of 6.75 percent 10 years to maturity a face value of 1000 and semiannual

  Tuttle enterprises is considering a project that has the

tuttle enterprises is considering a project that has the following cash flow and required return data. what is the

  Calculate marginal tax rate and taxable income

Salary $22,000.00 Corporate Bonds $2,000.00 Muni Bonds $10,000.00 Ordinary Dividends $3,000.00 Qualified Dividends $3,000.00 ST Capital Gain $150.00 LT Capital Loss $1,500.00 Independent Contractor Net Income $17,500.00.

  How long will it take to achieve payback on the initial

How long will it take to achieve payback on the initial $2,000,000 TQM investment, rounded to the nearest month?

  What will happen to ytm and the bond price

In the bond market, what is the difference between the coupon rate and the yield to maturity? Why are they usually different? After bond issuance, if inflation rate go up, what will happen to YTM and the bond price?

  What origination fee should be charged

a. What origination fee should be charged if it is expected that the loan will be repaid after 10 years?

  Find the beta coefficients

I understand that B is at more risk but not understanding what the formula would be to come up to the rM and beta coefficients of A and B.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd