Assuming a positive discount rate, the discounted payback method will generally yield a solution that is greater than that of the payback method (assume assume multiperiod analysis with the payback solution = 3 years)
Group of answer choices
True
False
True,
When we use the discounted payback method, we discount the cash flows, which will always increase the payback period.
Assuming a positive discount rate, the discounted payback method will generally yield a solution that is...
Discounted payback period) Assuming an appropriate discount rate of 11 percent, what is the discounted payback period on a project with an initial outlay of $100,000 and the following cash flows? Year 1 $30,000 Year 2 $35,000 Year 3 $25,000 Year 4 $25,000 Year 5 $30,000 Year 6 $20,000 The project's discounted payback period is years. (Round to two decimal places.)
When will the conventional payback method and discounted payback method yield the same result? A. Always B. Never C. If and only if the interest (discount) rate for the discounted payback method is much lower than the conventional method. D. No conclusions can be drawn based on the statement. E. When the interest rate is zero. Two mutually exclusive project alternatives are being considered, where both project lives are shorter than the infinite project analysis period. The first alternative has...
Which one of these statements related to discounted payback is correct? Multiple Choice Payback is a better method of analysis than discounted payback. Discounted payback is used more frequently in business than payback. Discounted payback does not require a cutoff point. Discounted payback is biased towards short-term projects The discounted payback period increases as the discount rate decreases.
Which of the followin is correct? A. Because discounted payback takes account of the required rate of return, a projects discounted payback is normally shorter than its regular payback. B. The npv and irr methods use the same basic equation, but in the npv method the discount rate is specified and the equation is solved for npv, while in the irr method the npv is set equal zero and the discount rate is found. C. If the required rate of...
Find the Discounted Payback period for the following project. The discount rate is 7% Project X Initial Outlay $17,606 Year 1 $5,568 Year 2 $5,633 Year 3 $5,924 Year 4 $8,418 Round the answer to two decimal places.
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Find the Discounted Payback period for the following project. The discount rate is 6% Project X Initial Outlay $8,901 Year 1 $3,673 Year 2 $3,405 Year 3 $5,468 Year 4 $7,129 Round the answer to two decimal places.
Find the Discounted Payback period for the following project. The discount rate is 9% Project X Initial Outlay $8,805 Year 1 $3,984 Year 2 $3,396 Year 3 $5,804 Year 4 $6,488 Round the answer to two decimal places.
Find the Discounted Payback period for the following project. The discount rate is 9% Project X Initial Outlay $8,236 Year 1 $3,283 Year 2 $3,625 Year 3 $5,116 Year 4 $7,409 Round the answer to two decimal places.
Find the Discounted Payback period for the following project. The discount rate is 10% Project X Initial Outlay $17,274 Year 1 $5,000 Year 2 $5,965 Year 3 $5,705 Year 4 $8,743 Round the answer to two decimal places.