The average accounting return method

Assignment Help Financial Management

Reference no: EM131987550

1. A firm is evaluating a potential investment that is expected to generate cash flows of $100 in years 1 thru 4 and $400 in years 5 thru 7. The initial investment is $750. What is the payback for this investment ?

2. The average accounting return method

A. ignores some project years.

B. ignores the timing of net income.

C. properly discounts all values.

D. is preferred by financial analysts over the alternative methods.

E. is never used in practice.

Reference no: EM131987550

Questions Cloud

Stock price upon the announcement of this? change : What would happen to? Arbuckle's stock price upon the announcement of this? change?

Analyze the organizational structure and management team : Analyze the organizational structure and management team and Key corporate goals and objectives such as new products, new markets, and new customers.

Define the cutoff bank statement and describe the purpose : Define the Cutoff Bank Statement and describe the purpose. Define the Interbank Transfer Schedule and describe the purpose

State from which source each type of cash flow was derived : Note the inflow or outflow (+ or -) State from which source each type of cash flow was derived

The average accounting return method : What is the payback for this investment ? The average accounting return method

What areas of improvement do you recommend : Develop a simple statement of cash flows for George's Trains using any information gleaned from the video. What areas of improvement do you recommend?

Identify the tangible and intangible costs and benifits : Using the weighted-criteria decision matrix tool we discussed in class, determine and give weights to the key criteria you will use to evaluate the solutions.

Define present value : Find the following values. Compounding/discounting occurs annually. Define present value.

What implications does type of employer-employee : What implications does this type of employer-employee compact raise for you as a future white-collar worker?

User Account

All Pages