Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The drawbacks of the payback approach are as follows
- Payback ignores the overall profitability of a project by ignoring post payback cash flows. In the illustration above the cash flows between 3.5 years as well as the end of the project sum to $80000. To overlook such substantial cash flows is somewhat naïve and as a consequence the method is biased in favour of fast return investments. This can be result in investments which generate cash flows more gradually in the early years but which are overall more profitable being rejected if the payback system is used for investment decisions.
- As among ARR the method ignores the time value of money.
- The payback method in the similar way as ARR offers no objective measure of what is the desirable return as measured by the length of the payback period.
Uses of operating cycle in business
Fixed Costs The costs a rigid incurs doing business that do not change in relation to production. Rent, for example, is a fixed cost because it remains constant whether product
What is the different between equity claims and debt instruments in financial securities? By getting conclusion about equity claims and debt instruments, that equity claims are
A company enters into a five-year interest rate swap along with a swap bank where it agrees to pay the swap bank a fixed-rate of 9.75 percent yearly on a notional amount of DM15,0
1 Explain the difference between a forward start option and a package. Outperformance certificates are offered to investors by many European banks as a way of investing in a com
Explain the term "present value of the firm's operations" (also known as Enterprise Value ). What does this number represent? The present value of the company's free cash flo
Karl Robinson is about to make his first major decision as president and chief executive officer of Conway Control & Instrument Corporation, a manufacturer of electronic test instr
What is Control risk That material misstatement could take place and not be detected, or prevented on a timely basis, by accounting and internal control systems. All audits
Out of Cash Calculated by taking organization cash on hand divided by its burn rate, yielding the time period that the organization will have enough cash to cover what it wants
If the 180-day forward rate for the Pound were GBPARS 21.45 (today GBPARS 19.5) what does this tell you about inflation in Argentina, explain your assumptions and the link with the
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd