User Account

All Pages

Determining the payback period rule

Assignment Help Finance Basics
Reference no: EM132077420

We have two investment projects A&B. Both projects cost $250, and we require a 15% return of the two investments.

Year                   A                        B

1                       $100                  $100

2                       $100                  $200

3                       $100                  0

4                       $100                  0

a) Based on the payback period rule, which project would you pick? Explain.

b) Based on the NPV rule, which project would you pick? Explain.

c) Do (a) and (b) give you the same conclusion? If not, why? Please elaborate.

d) What other methods can you use to evaluate proposed investments? Please explain.

Reference no: EM132077420

Questions Cloud

United states is becoming increasingly more litigious : Some scholars contend the United States is becoming increasingly more litigious.
Define and describe the concept of pest : A business environment is often affected by many variables often described as the concept known as PEST.
How much revenue should WW Guy recognize : How much revenue should WW Guy recognize during Year 1 if WW Guy uses the percentage of completion method
Is globalization a good move for the company : What geographic location should be a target for global expansion? What background information can you provide to support this decision?
Determining the payback period rule : We have two investment projects A&B. Both projects cost $250, and we require a 15% return of the two investments.
Entrepreneurial start-up in the united states fails : Which of the following is the most common reason that an entrepreneurial start-up in the United States Fails?
Describe the spot market : Describe the spot market. Compare foreign exchange brokers and foreign exchange dealers.
Compute the efficiency variances for direct labor : You decide to look at your sales for a typical day. You find that the parlor used 390 pounds of ice cream, Compute the efficiency variances for direct labor
What decisions go into the structuring of an organization : What decisions go into the structuring of an organization? Identify and discuss the 4 basics steps of any optimization model.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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