One weakness of the regular payback method

Assignment Help Financial Management

Reference no: EM132071556

Select all the correct answers:

A) One weakness of the regular payback method is that it ignores what happens after the initial cost is recovered. The discounted payback method resolves this issue

B) The crossover rate is the cost of capital in which two projects have the same NPV

C) A firm has a WACC of 15%. A project requires an initial cash flow of $5,000, then it will pay $1,000 for 10 years. The discounted payback of this project is smaller than its regular payback

D) If the crossover rate is 15% and at a WACC of 10% project A has higher NPV than project B, at a WACC of 20% project A will have a lower NPV of project B

Reference no: EM132071556

Questions Cloud

Federally designed standards for emergency management : Political scientists use a term called "coercive federalism" to describe how the federal government uses federal funds to entice states unilaterally

Marketing project-distribution channels and pricing paper : Prepare a 3 - 4 page double-spaced paper that evaluates and recommends distribution channels, pricing, and competitive differentiation.

Calculate the present value of annuity : Calculate the present value of an annuity of $5,000 received annually that begins today and continues for 10 years, assuming a discount rate of 9%.

Calculate the number of books katie needs : Assume that Katie wants to earn a profit of $4,000. Calculate the number of books Katie needs to sell to earn a desired profit of $4,000

One weakness of the regular payback method : One weakness of the regular payback method is that it ignores what happens after the initial cost is recovered.

Potential middle-range theory : A brief summary of the problem including the potential middle-range theory that could be applied.

Why this issue needs recognition or increased awareness : Explain your vision of future directions for community health education theory and intervention development in the field of public health.

Calculation to get wacc on three statement model valuation : Explain the process and calculation to get the WACC on a three statement model valuation.

What is his exposure under the corporate form : John Henry has a small housecleaning business that currently is a sole proprietorship. What is his exposure under the corporate form

User Account

All Pages