Discounted payback method-true aand false

Assignment Help Finance Basics
Reference no: EM1332188

Which one of the following statements about the discounted payback method is true?

A) The discounted payback technique tends to favor longer term projects over shorter term projects

B) The discounted payback period method completely ignores cash flows that occur after the initial investment has been recouped

C) The discounted payback period provides valid information about the projects liquidity and therefore is a helpful assessment of risk.

D) All of the above choices are true statements

E) Only choice A and B are true

F) Only choice B and C are true

G) Only choice A and C are true

Reference no: EM1332188

Questions Cloud

Systematic risk : Diversifiable risk can be reduced by forming a large portfolio,  is this a correct statement?
Explain strategic role in driving organizational performance : What does it mean to say that HRM plays a strategic role in driving organizational performance and Consider recruiting, performance appraisal, and compensation strategies as part of your answer.
Explain difference between e-commerc vs e-business : Explain E-commerc vs e-business and describe that Can a company engage in one without the other
Assume the problems of maximizing solves the first problem : Assume the problems of maximizing solves the first problem if and only if it also solves the second problem.
Discounted payback method-true aand false : Which one of the following statements regarding the discounted payback method is true?
Automating the hr function and hris : Analysis and Recommendations: Automating the HR Function and HRIS - Analysis: After reviewing the scenario below, how might you analyze the current situation and how would you share your analysis with this customer
Elucidate that the indirect utility fuction : Elucidate that the indirect utility fuction of quasi convex function of prices and income
Case on oil exploration : A local energy provider offers a landowner USD 180,000 for the exploration rights to natural gas on a certain site and the option for future development.
Expalin how to make a bookexception class : generate an error message that is passed to the Exception class constructor for the Message property when a book does not meet the price-to-pages ratio.

Reviews

Write a Review

Finance Basics Questions & Answers

  Description of annuity problem

Which of the following cash flows is equal to receiving $125.00 today supposing a 9% annual discount rate?

  Define the different way of transfer of suppliers of capital

Define the different way of transfer of suppliers of capital, describe the different methods of transfer of suppliers of capital to demanding capital

  Computation of payback period

Computation of Payback period and what is the payback period for a $20,000 project expected to return $6,000 for the first two years and $3,000

  Calculate the expected return and the expected risk

The extent of the benefits of portfolio diversification depends on the correlation between returns of securities. Briefly discuss the relationship between the portfolio risk and coefficient of correlation.

  Time value of money in making financial decisions

Kim has arranged a meeting with you and the head of manufacturing because she thinks you need to explain to him the time value of money.

  Interest rate swaps on the borrowings

Computation of savings with Interest rate swaps on the borrowings - What range of interest rates would make this swap attractive to both parties?

  Objective type questions related to finance fundamentals

Objective type questions related to finance fundamentals and If you assume that your raises will just match the inflation rate

  Explain maximum price that can be paid for the bond

Explain Maximum price that can be paid for the bond and what is the maximum price you should be willing to pay for the bond

  Determining cash flows happen at ending of year

Suppose that all cash flows happen at the ending of year. SGP is presently financed with 30% debt at the rate of 10%. Acquisition would be made immediatel.

  Determining the retirement annuity

What annual contributions to retirement fund will let you to receive the $60,000 annually? What annual contributions are needed if the contributions are made at the beginning of each year?

  Computing the cash break-even level of output

Computing the cash break-even level of output where you are considering a new product launch

  Computation of no odd days to pay its suppliesrs

Computation of no odd days to pay its suppliesrs and the cost of goods sold is equivalent to 65% of sales

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