Describe how the payback period is calculated

Assignment Help Cost Accounting
Reference no: EM13341036

Payback Period. Concerning payback:

a. Describe how the payback period is calculated and describe the information this measure provides about a sequence of cash flows. What is the payback criterion decision rule?

b. What are the problems associated with using the payback period to evaluate cash flows?

c. What are the advantages of using the payback period to evaluate cash flows? Are there many circumstances under which using payback might be appropriate? Explain.

Reference no: EM13341036

Questions Cloud

What is the strain in the post : A vertical solid steel post 25 cm in diameter and 3.50 m long is required to support a load of 7100 kg. You can ignore the weight of the post. What is the strain in the post
Explain the best lewis structure a resonance structure : In which one of the following species is the best Lewis structure a resonance structure. a. NH3 b. CO2 c. SF6 d. O2 e. CO32
Calculating payback : Calculating Payback. An investment project provides cash inflows of $585 per year for 8 years. What is the project payback period if the initial cost is $1,700? What if the initial cost is $3,300? What if it is $4,900?
Find the maximum velocity and total energy of the mass : obtain the equation of motion for a 125g mass at the end of a perfectly elastic spring which when stretched 14.5 cm from equilibrium,  find the maximum velocity and total energy of the mass
Describe how the payback period is calculated : Describe how the payback period is calculated and describe the information this measure provides about a sequence of cash flows. What is the payback criterion decision rule?
At what frequency does the driver of the car hear the siren : An ambulance traveling at 46 m/s approaches a car heading in the same direction at a speed of 31 m/s. At what frequency does the driver of the car hear the siren
Should the firm accept this project : Calculating NPV. For the cash flows in the previous problem, suppose the firm uses the NPV decision rule. At a required return of 11 percent, should the firm accept this project? What if the required return is 25%?
What is the balloons new radius : Suppose you have a spherical balloon filled with air at room temperature and 1.0 atm pressure; its radius is 8cm. what's the balloon's new radius
Find the rotational kinetic energy and angular momentum : A horizontal merry-go-round has a mass of 1000 kg, and is a solid disk of radius 2.00 m. It is started from rest by a constant horizontal force of 50.0 N applied tangentially to the edge of the disk.

Reviews

Write a Review

Cost Accounting Questions & Answers

  Evaluate the maximum depreciation expense

Evaluate the maximum depreciation expense

  Find the november total cash collections

In November total cash collections - Wright Corporation began its operations on Sept. 1 of the current year

  Process cost system to record the costs of processing

HomeStyle Soup Co. uses a process cost system to record the costs of processing soup, which requires the cooking and filling processes. Materials are entered from the cooking process at the beginning of the filling process.

  Calculate the total manufacturing costs

Calculate the total manufacturing costs and the cost per unit of the windows produced during the month of March (using the activity-based costing approach).

  Common stock and percentage of debt fund

Debt, common stock and percentage of debt fund - Given the above constraints, what portion of the $800 million capital budget will be funded with debt

  Objective function and the mixing constraints

Show the objective function and the mixing constraints for the linear program that Melnick would use to determine the optimal monthly production of each wax.

  How many units of each product whitt must sell

Determine how many units of each product Whitt must sell in order to breakeven in 2012 and companys fixed selling and administrative expanses are forecasted to be $500,000. Whitt has a tax rate of 40 percent.

  What is the cost of the unused capacity

Compute the new cost per unit for each of the products considering the increase in capacity. Show the computation for each per unit product cost in detail and What is the cost of the unused capacity

  Computation of amount of rentals

Computation of Amount of Rentals

  Direct method and step down method

If you were to use step down method, which user departments could be ranked highest on your list and could you recommend that allocations be made based on actual usage or based on budget usage

  Determine the amount of interest expense

Calculate the balances to be reported in the financial statements dated December 31, 2012 - Allowance for Available-for-Sale securities

  What amount is the note payable recorded

What amount is the note payable recorded at on 1 st October and how much interest is recognized from October 1 to December 31?

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!

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