User Account

All Pages

Why is an investment more attractive to management

Assignment Help Financial Management
Reference no: EM132325721

Question

Why should managers set the required rate of return higher that the rate at which money can be borrowed when making a typical budgeting decision?

Why is an investment more attractive to management if it has a shorter payback period? Should this be the only consideration? Explain.

Why are discounted cash flow methods considered better than other methods for evaluating investments? Explain and discuss.

Reference no: EM132325721

Questions Cloud

Calculate the amount of operating income : If a flexible budget is prepared at a volume of 8 comma 400 8,400 ?units, calculate the amount of operating income.
Leadership in contrast to secular perspective of leadership : Characteristics of communication. Paradigm/theological support for biblical leadership in contrast to secular perspective of leadership.
Economic analysis of demand for product-service : Economic Analysis of the Demand for Product/Service in Healthcare Sector. Define "complement" goods and identify potential complements for your product/service.
What influences your health services purchases : What Influences your health services purchases? Think of last time you accessed health service. Identify what need you had to lead you to seek health service
Why is an investment more attractive to management : Why should managers set the required rate of return higher that the rate at which money can be borrowed when making a typical budgeting decision?
Three factors that impact demand for health insurance : Identify at least three factors that impact demand for health insurance? Why is health insurance linked to employment (e.g. group insurance) in United States
Explain the relationship between costs and prices : Explain the relationship between costs and prices. In what ways is health care pricing strategies different than in other industries?
Focuses comprehensively on specific intervention : Evidence-based article that focuses comprehensively on a specific intervention or new diagnostic tool for the treatment of diabetes in adults or children.
Analysis of the verbal and nonverbal communication : Choose A Scene That Has Extensive Interpersonal Communication. Analysis of verbal and nonverbal communication that took place between characters in that scene.

Reviews

Write a Review

Financial Management Questions & Answers

  Pay interfirst according to the standard fra formula

Suppose that KF Exports enters into an FRA with Interfirst Bank with a notional principal of $40 million and the following terms: In six months, if LIBOR is above 6% then KF will pay Interfirst according to the standard FRA formula; KF OR Interfirst ..

  What is the required rate of return on stock

Cabell Corp. bonds pay an annual coupon rate of 10%. If investors' required rate of return is now 12% on these bonds, they will be priced at. Crandle's common stock is currently selling for $79.00. It just paid a dividend of $4.60 and dividends are e..

  What will be the value in your account at the end of year

You will invest each payment in an account that pays 8 percent. What will be the value in your account at the end of Year 20?

  What is project financial break-even point in units

Lindow's Limes invested $600,000 to develop a new, home seized lime juice machine. The variable costs were $30 per unit and fixed costs were $100,000. This project is expected to take 4 years to become marketable. what is the project's financial brea..

  Prospect positive npv using roe as the hurdle rate

Using the tax cash flows and no debt (pure equity) is the prospect a positive NPV using ROE as the hurdle rate?

  Considering replacing the magnet

You are considering replacing the magnet that separates the iron from the non-ferrous materials your recycling company processes.

  What is the company unlevered cost of equity capital

What is the company’s cost of equity capital? What is the company’s unlevered cost of equity capital?

  What kind of contract does her brokerage have with them

Mary just listed her neighbor’s property. What kind of contract does her brokerage have with them?

  New project that will require purchasing equipment

A firm is considering a new project that will require purchasing equipment which will have a cost of $18 million. Installation and modification of the equipment will cost $2 million. The project has a five year life, and the equipment will be depreci..

  Photocopying for sales department-administrative department

Triton Company's copy department, which does almost all of the photocopying for the sales department and the administrative department, budgets the following costs for the year, based on the expected activity of copies:

  What is net present value of the project

What is the net present value of the project?

  What is the probability of booming economy

What is the probability of a booming economy occurring if these are the only two economic states?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd