The payback method of analysis ignores which one of the following?
1. Time value of money
2. Arbitrary cutoff point
3. Cash flow direction
4. Timing of each cash inflow
5. Initial cost of an investment
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Correct answer is option :
1. Time value of money
Payback period ignore time value of money .
The payback method of analysis ignores which one of the following? 1. Time value of money...
Question 1 (1 point) The payback method of analysis ignores which one of the following? O 1) Cash flow direction 2) Timing of each cash inflow 3) Arbitrary cutoff point 4) Time value of money 5) Initial cost of an investment
Which one of the following methods of analysis ignores the time value of money? Net present value Internal rate of return Discounted cash flow analysis Payback Profitability index
The conventional payback period ignores the time value of money, and this concems Blue Hamster's CFO. He has now asked you to compute Delta's discounted payback period, assuming the company has a 10% cost of capital. Complete the following table and perform any necessary calculations. Round the discounted cash flow values to the nearest whole dollar, and the discounted payback period to two decimal places. For full credit, complete the entire table. (Note: If your answer is negative, be sure...
The conventional payback period ignores the time value of money, and this concerns Blue Hamster's CFO. He has now asked you to compute Delta's discounted payback period, assuming the company has a 8% cost of capital. Complete the following table and perform any necessary calculations. Round the discounted cash flow values to the nearest whole dollar, and the discounted payback period to the nearest two decimal places. For full credit, complete the entire table. Year 0 -5,500,000 Year 1 $2,200,000...
1.) The conventional payback period ignores the time value of money, and this concerns Green Caterpillar’s CFO. He has now asked you to compute Alpha’s discounted payback period, assuming the company has a 9% cost of capital. Complete the following table and perform any necessary calculations. Round the discounted cash flow values to the nearest whole dollar, and the discounted payback period to two decimal places. For full credit, complete the entire table. (Note: If your answer is negative, be...
One advantage of the payback method of project analysis is the method's application of a discount rate to each separate cash flow. simplicity. difficulty of use. arbitrary cutoff point. consideration of all relevant cash flows.
The conventional payback period ignores the time value of money, and this concems Blue Hamster's CFO. He has now asked you to compute Delta's discounted payback period, assuming the company has a 10% cost of capital. Complete the following table and perform any necessary calculations. Round the discounted cash flow values to the nearest whole dollar, and the discounted payback period to two decimal places. For full credit, complete the entire table. (Note: If your answer is negative, be sure...
The payback method is often criticized because it ignores the time value of money and cashflows after the payback period has been reached. How could a simple payback calculation be used to compare with projects that have been evaluated by using the net present value method?
Which of the statements below are true for the payback method of evaluating projects? ' The payback method ignores the time value of money. O The payback method considers all of the project cash flows. O The payback method uses an arbitrary all of the above. Two of the above.
The payback method helps ms establish and identify a maximum acceptable payback period that helps in capital budgeting decisions. There are two versions of the payback method the convention payback method and the discounted payback method Consider the following case Green Caterpillar Garden Supplies Inc. is a small tim, and several of its managers are worried about how soon the firm will be able to recover its initial investment from Project Omega's perted future cash flows. To answer this question...