Explain why the payback method cannot be recommended as the main method used by a company to
Question:
Explain why the payback method cannot be recommended as the main method used by a company to assess potential investment projects.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (3 reviews)
The payback method cannot be recommended as the main method used by a company t...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Corporate Finance Principles And Practice
ISBN: 9781292450940
9th Edition
Authors: Denzil Watson, Antony Head
Question Posted:
Students also viewed these Business questions
-
The payback method cannot be used if the cash inflows occur in unequal patterns. Do you agree or disagree? Explain.
-
What are the strategies that NETFLIX utilized in their campaign and in what social media platform were these strategies seen? Give at least three and explain each briefly. What is your takeaway from...
-
Up until now, Mzansi Systems has been using the payback period in its capital budgeting decisions. A recent article in the GIBS Business Review on the use of discounted cash flow methods versus the...
-
A vessel is in the form of an inverted cone. Its height is 8 cm and the radius of its top, which is open, is 5 cm. It is filled with water up to the brim. When lead shots, each of which is a sphere...
-
How does the ACFE categorize fraudulent disbursements?
-
1. How does a start-up establish a brand? What do we learn from JCPenneys miscues about the importance of branding? 2. Although the concept of selecting a target market and establishing a unique...
-
So-called Franklin tests were performed to determine the insulation properties of grain-oriented silicon steel specimens that were annealed in five different atmospheres with the following results:...
-
Is there a significant difference in the level of community service participation between college and high school graduates? According to the 2010 GSS, 38% of 160 college graduates reported...
-
Short-selling Suppose Susan opens a brokerage account to short-sell 100 shares of XYZ at $10 per share. The initial margin requirement is 50%, the maintenance margin is 20%. If Susan borrows stocks...
-
Private pension funds across the world are finding it more difficult to meet their obligations to future retirees. In July 2012, the 100 largest US private pension funds faced a $533bn shortfall,...
-
Clement plc is evaluating three investment projects, whose expected cash flows are given in Table 6.4. Calculate the net present value for each project if Clements cost of capital is 10 per cent and...
-
What does it mean to say that culture is "invisible"? Explain how this invisible force serves to restrict and control the activities of advertisers.
-
Did Enrons auditor fail or was the auditing firm a victim as well?
-
This is an unusual paragraph. Im curious how quickly you can find out what is so unusual about it. It looks so plain you would think nothing was wrong with it. In fact, nothing grammatical is wrong...
-
Investigate location and exploration. Evaluate a location-based game or gamified system and identify the ways that it encourages exploration in the real world. Are there elements or features that you...
-
Did complicated computer programming and analysis play a role in the investigation?
-
Was Enron an accounting fraud or a business failure concealed by fraud?
-
On July 15, 2018, Capstick Inc. will be making a $40,000,000 bond issue to public investors. The bond matures in seven years on July 14, 2025, has a coupon rate of 4 percent, and pays interest...
-
Software Solution is family-owned business that has been in operation for more than 15 year. The board of directors is comprised of mainly family members, plus a few professionals such as an...
-
Suppose you have $5,000 on deposit. One day, you write a check for $1,000 to pay for books and you deposit $2,000. What are your disbursement, collection, and net floats? After you write the $1,000...
-
You enter into a forward contract to buy a 10-year, zero coupon bond that will be issued in one year. The face value of the bond is $1,000 and the 1-year and 11-year spot interest rates are 6 percent...
-
Ted and Alice Hansel have a son who will begin college 12 years from today. School expenses of $55,000 will need to be paid at the beginning of each of the four years that their son plans to attend...
-
An airplane in a holding pattern flies at constant altitude along a circular path of radius 3.70 km. If the airplane rounds half the circle in 170 s, determine the following. (a)Determine the...
-
1. A vat of 12.0 kg of molten copper at its boiling point of 1083C is placed in a room with dimensions 3.00 m by 9.00 m by 3.00 m with an initial temperature of 20.0C. A) If air has a specific heat...
-
An air to air missile is fired horizontally from a fighter plane that travels with a speed of v0 = 257m/s. The nasa of the missile is 194 kg. Determine the average horizontal force in N(due to the...
Study smarter with the SolutionInn App