What are the main objections to the use of payback

Assignment Help Financial Management

Reference no: EM131926243

Ikaneng Pty (Ltd) is evaluating a project with the following cash flows: The initial investment is R6 250. The company has a required rate of return of 10 per cent.

Calculate:

4.1. the payback period (4)

4.2. the discounted payback (4)

4.3. the net present value. (4)

4.4. the internal rate of return (4)

4.5. What are the main objections to the use of payback? Why does it remain a very popular method? (4)

Reference no: EM131926243

Questions Cloud

How much should be placed in t-bills : Imagine you are a provider of portfolio insurance. You are establishing a 4-year program. How much should be placed in T-bills?

What was your total return for the past year : You purchased a zero coupon bond one year ago for $120.36. The market interest rate is now 13 percent. If the bond had 17 years to maturity when you originally.

What is the percent by mass of carbon found in caffeine : What is the percent by mass of carbon found in caffeine C8H9N4O2 what is the mass of carbon in milligrams found in 95mg of caffeine.

How shall the reptile food be made and what is cost per bag : A commercial food for caged reptiles is made in 40-pound bags from five potential feeds. How shall this reptile food be made, and what is the cost per bag?

What are the main objections to the use of payback : Ikaneng Pty (Ltd) is evaluating a project with the following cash flows: The initial investment is R6 250. The company has a required rate of return of 10%.

What is your current loan to value ratio : You purchased a property 4 years ago for $275,000 using a 75% LTV mortgage. The mortgage was a 15 year fully amortizing FRM with a 3.8% rate.

Create a critical review of influential paper : Create critical review of one of the most influential papers of recent years. Topic-A: YAGO2: A spatially and temporally enhanced knowledge base from Wikipedia

How much is the account worth at the end of the given years : Tara has $81 deducted from her paycheck at the end of each month and put into a savings account earning 9.1% interest compounded monthly.

Obtain estimate of Zynk cost of equity capital and WACC : Obtain an estimate of Zynk's cost of equity capital and its WACC.

User Account

All Pages