Question

all the below is true regarding the payback period
except

Select one:

a. does not consider the time value of cash flow

b. does not consider the cash after the payback period

c. the best way to evaluate a long term with large capital
projects

d. measures the performance of the management

Answer #1

Payback period method is not the best method for evaluating long term with large capital project because these are only applicable for projects till they are returning back the initial money so they are not taking entire cash flow into the calculation perspective so they are not the best way to calculate long term projects.

Rest of the options are true regarding payback period because it will not consider time value and it will not consider cash after the payback period.

Correct answer will be option (C) the best way to evaluate a long-term with large capital product

Which of the following statements concerning the payback period
is NOT true
A.
The payback period is simple to calculate and understand.
B.
The payback period measures the time that a project will take to
generate enough cash flows to cover the initial investment.
C.
The payback period ignores cash flows after the payback period
has been achieved.
D.
The payback period takes account of the time value of money.

Which of the following statements about the "payback period" is
true?
The payback period fails to produce an objective decision to
accept or reject an individual project.
The payback period considers the time value of money.
The payback period uses discounted cash-flow techniques.
The payback period considers cash flows after the payback has
been reached.

11. The NPV and payback period
What information does the payback period provide?
A project’s payback period (PB) indicates the number of years
required for a project to recover its initial investment using its
operating cash flows. As the theoretical soundness of the
conventional (undiscounted) PB technique was criticized, the model
was modified to incorporate the time value of money-adjusted
operating cash flows to create the discounted payback method. While
both payback models continue to reflect faulty ranking criteria,
they...

Concerning payback, which of the following statements is
true?
a) Payback is no longer used since it ignores the time value of
money.
b) Payback can only be used on simple projects since it cannot
deal with cash flow.
c) Payback period varies inversely with the benefit-cost ratio:
the shorter the payback period, the higher the benefit-cost.
d) Payback is only used for capital intensive projects.

7. The NPV and payback
period
What information does the payback period
provide?
Suppose Extensive Enterprises’s CFO is evaluating a project with
the following cash inflows. She does not know the project’s initial
cost; however, she does know that the project’s regular payback
period is 2.5 years.
Year
Cash Flow
Year 1
$325,000
Year 2
$500,000
Year 3
$450,000
Year 4
$450,000
If the project’s weighted average cost of capital (WACC) is 8%,
what is its NPV?
$367,583
$312,446
$404,341...

ALL OF THE BELOW ARE TRUE ABOUT INTERNAL RATE OF RETURN
EXCEPT
Select one:
a. ACCEPT THE PROJECT IF IRR IS LESS THAN THE DISCOUNT RATE
b. NPV EQUAL ZERO
c. ACCEPT THE PROJECT IF IRR IS HIGHER THAN THE DISCOUNT RATE
d. IRR IS A WAY TO EVALUATE THE ACCEPTANCE OF A PROJECT
Please Solve As soon as
Solve quickly I get you two UPVOTE directly
Thank's
Abdul-Rahim Taysir

Which of the following statement is correct? Select one:
a. Since the payback period method fails to look at the cash
flows beyond the payback period, it can lead to poor business
decisions.
b. A firm should never accept the independent projects having
NPVs greater than zero.
c. The capital budgeting projects may be about the purchase of
financial asset such as investing in stocks and bonds, futures, or
buying and selling T-bills.
d. The number of time periods it...

How does the use of payback period, net present value, and
internal rate of return for capital budgeting projects connect
directly with a firm’s strategic goals?
What factors in the political, business, and economic climate
or environment have a direct correlation to capital budgeting
projects? What potential short-term and long-term impact on capital
budgeting projects might these factors have?

All of the following are true regarding benchmarking EXCEPT:
that the purpose is to gather information regarding the best
practices of others. that buy-in by employees is critical.
benchmarking can save time and money by avoiding the mistakes made
by others. benchmarking initiatives generally result in quick
changes to the work environment.

What information does the payback period provide?
Suppose Praxis Corporation’s CFO is evaluating a project with
the following cash inflows. She does not know the project’s initial
cost; however, she does know that the project’s regular payback
period is 2.5 years.
Year
Cash Flow
Year 1
$300,000
Year 2
$450,000
Year 3
$400,000
Year 4
$450,000
If the project’s weighted average cost of capital (WACC) is 10%,
what is its NPV?
A.) $302,510
B.) $332,761
C.) $317,636
D.) $287,385
Which...

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