Cash flow projection more than a few years out are not worth

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"Cash flow projections more than a few years out are not worth the paper they're written on.

Therefore, using payback analysis, which ignores longterm cash flows, is more reasonable than making wild guesses as one has to do in the NPV approach." Respond to this comment.

Reference no: EM131328797

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Describe the features of the payback rule : Describe the features of the payback rule that could lead to Type I errors.- Describe the features of the payback rule that could lead to Type II errors.

Description of your selected company or brand : Your document should contain paragraphs that cover the following topics: A description of your selected company/brand, The core products/services they offer and A brief history

Which method has more severe bias against long lived projets : Holding the cutoff period fixed, which method has a more severe bias against long-lived projects, payback or discounted payback?

Prepare the year-end balance sheet : Prepare the year-end balance sheet for 2015. Be sure to use proper headings. Prepare budgets such that the pro-forma financial statements for the first quarter of 2016 may be prepared.

Cash flow projection more than a few years out are not worth : Using payback analysis, which ignores longterm cash flows, is more reasonable than making wild guesses as one has to do in the NPV approach." Respond to this comment.

Share an accomplishment you are proud : Identify two things you learned in this course that you couldn't have imagined being successful without practicing or having - Describe how course has helped you be a better writer.

Smart analysts can massage the numbers in npv analysis : It is better to use a simpler approach like payback or accounting rate of return that gives analysts fewer degrees of freedom to manipulate the numbers." Respond to this comment.

What happens to value of firm if positive npv project accept : In what way is the NPV consistent with the principle of shareholder wealth maximization? What happens to the value of a firm if a positive NPV project is accepted? If a negative NPV project is accepted?

Why is the npv considered to be theoretically superior : How would you respond to your CFO if she instructed you to use the IRR technique to make capital budgeting decisions on projects with cash flow streams that alternate between inflows and outflows?

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