Statements about the payback method

Assignment Help Financial Management

Reference no: EM13725285

Which ONE of the following statements about the payback method is true?

>The payback method is consistent with the goal of shareholder wealth maximization

>The payback method represents the number of years it takes a project to recover its initial investment plus a required rate of return.

>There is no economic rational that links the payback method to shareholder wealth maximization.

>None of these statements are true.

Reference no: EM13725285

Questions Cloud

Determine end of coming year level of accounts receivable : In the past a company's collection period has been 45 days. Using the percentage of sales method, determine the end of coming year level of accounts receivable that accompany the following sales levels if accounts receive able were a spontaneous asse..

Discusses era of reform and its impact on america commitment : Discusses the era of reform and its impact on America's commitment to liberty. Did this reform movement increase or decrease the nation's commitment to, and practice of liberty.

Purpose of a bia : Question 1: What is the goal and purpose of a BIA? Question 2: Why is a business impact analysis (BIA) an important first step in defining a business continuity plan (BCP)?

What is the value of fun toys equity : Fun Toy Corporation estimates that there is 25% chance of a recession economy next year, a 50% chance of a normal economy next year, and a 25% chance of a boom economy next year. The corporation will exist until the end of next year and then it will ..

Statements about the payback method : Which ONE of the following statements about the payback method is true? The payback method is consistent with the goal of shareholder wealth maximization. The payback method represents the number of years it takes a project to recover its initial inv..

Find the project schedule with the lowest total cost : Overhead project costs (Indirect costs) are $70 per day. Please crash the project and find the project schedule with the lowest total cost (indirect cost + direct cost)

Evaluating a project-what is the npv of the project : Monroe, Inc., is evaluating a project. The company uses a 13.8 percent discount rate for this project. Cost and cash flows are shown in the table. What is the NPV of the project?

Apply the tools and techniques in research : Project objective:1.Apply the tools and techniques in research and analysis required to evaluate computer and information science products.2.Describe how pipelining and superscalar processing improve the speed at which a computer program is executed...

Concepts in the development : Select, read and analyze one (1) comprehensive case presented in the text. Please apply all aspects of the course concepts in the development of your case solution.

User Account

All Pages