True regarding the payback method

Assignment Help Financial Management

Reference no: EM131856662

1. Which of the following is true regarding the payback method?

a) It favors projects with longer payback periods.

b) It can be used to measure the liquidity of an investment project.

c) It ignores depreciation tax shelter.

d) It is not applicable to projects with unequal lives.

e) It requires trial and error method to compute payback period for an investment project.

2. The IRR calculation implicitly assumes that all cash flows are reinvested at a rate of return equal to the:

a) firm's cost of capital.

b) 10-year Treasury security yield.

c) firm's cost of equitty.

d) the internal rate of return on the particular project examined.

Reference no: EM131856662

Questions Cloud

What is the population of interest : a. What is the population of interest? Race of residents in State X b. What is the variable of interest? The race of residents in 4 counties

Why do you accept reasons for us involvement in conflict : How are the reasons similar? How are they different? Do you accept their reasons for US involvement in conflict overseas? Why or why not?

Confident of estimating the population mean : If you want to be 95?% confident of estimating the population mean to within a sampling error of ± 33 and the standard deviation is assumed

Collaboration among an increasing number of? locations : In a survey of 950 organizations, 650 responded that? "the need for collaboration among an increasing number of? locations" is a business driver

True regarding the payback method : Which of the following is true regarding the payback method.The IRR calculation implicitly assumes that all cash flows are reinvested at rate of return equal to

Was there a difference in the leadership styles : Define the leadership theory with citations from your research. Use examples from your research and cite and then compare and contrast the two.

What is the relationship between measurements and statistics : Provide an example of a statistic. Provide an example of a measurement. What is the relationship between measurements and statistics?

Signers of the declaration of independence : The following are ages of 15 of the signers of the Declaration of Independence. Find the 10th and 75th percentiles for these ages.

What are possible obstacles i may have to overcome : What is my plan for developing the skills, knowledge, and dispositions to becoming the leader I want to be?

User Account

All Pages