Question: How is the discounted payback period calculated? Does discounted payback solve the deficiencies of the payback rule? Explain.

How is the discounted payback period calculated? Does discounted payback solve the deficiencies of the payback rule? Explain.

Step by Step Solution

★★★★★

3.43 Rating (159 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The discounted payback period is the number of periods a project must last in order ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

35-B-C-F-P-V (78).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!

Q:

What is the discounted payback for each project if the opportunity cost of capital is 11%?

Q:

If you switch to the discounted payback period from the payback period, what assumption are your making about the timing of the cash flow?

Q:

How is payback calculated with unequal net cash inflows?

Q:

The NPV rule is preferred to the discounted payback period as a project evaluation criterion because the discounted payback period rule ignores 1 II. The initial cost The timing of cash flows prior...

Q:

If MARR is 12% determine the following: a. Present worth b. Annual worth c. Future worth d. Discounted payback period e. Payback period f. Solve part (a-e) using excel. If MARR is 12% determine the...

Q:

Attached is the prior work done on a excel sheet for this course to show what this assignment needs to be compared too. The assignment instruction are below "This time you will compare the projects...

Q:

Using the attached and the unit reading assignment, explore the capital budgeting techniques covered in the unit, NPV, PI, IRR, and Payback. Compare and contrast each of the techniques with an...

Q:

Part 1 ( 4 0 points ) Create a user - defined function to solve for the discounted payback period. This is a tool that is used in capital budgeting. The simple payback period that we used in class...

Q:

also find npv and discounted payback period Question 47 1 pts A capital investment project is estimated to have the following after-tax cash flows, by year Year 0 1 2 3 4 Cash Flow -$60,000 $22.500...

Q:

Can you help with this assignment. The company we are using is JCPenney. FIN515: Week 6 Project - Calculating the Weighted Average Cost of Capital Once again, your team is the key financial...

Q:

You take out a real estate loan of 100,000 in constant monthly payments.The annual interest rate is 3.6%. The duration of the loan is 50 years.On what date (after how many months) Will you have...

Q:

Q3. What is coordination number of Cu(I) in (i) [Cu(CN),] (ii) [Cu(CN)] (a) 3, 3 (b) 2,3 (c) 2, 2 (d) 3, 2

Q:

FASB ASC 8 - 5 Classification of Current Liabilities Search the FASB ASC to find information on the classification of current liabilities. Cite and copy the relevant paragraph.

Q:

NEED HELP URGENTLY! I am stuck and need help please! Thank you so much!! Pre-Lab for LAB#2 Problem 1 The Basketball Let's assume a basketball is dropped from a height of 1.5 m. How long will it take...

Q:

Using the accompanying Retirement_Calculator spreadsheet model, Claire wants to use Scenario Manager to compare the following retirement saving scenarios: Click here for the Excel Data File Scenario...

Q:

https://www.chegg.com/homework-help/questions-and-answers/consolidating-international-subsidiary-year-acquisition-february-1-2019-pathway-inc-us-com-q70783048 we need answers please!

Q:

Forecasted financial statements are given Sales (all on credit) Cost of Goods Sold Gross Profit Selling and Administrative Expense Rent Expense Depreciation Expense Operating profit (EBIT) Interest...

Q:

Need help with question #3 Manderlee Inc., a manufacturer of custom tiaras uses a JOB ORDER cost system. The following data summarize the operations related to production for April 2020, the first...

Q:

Use data from Appendix IIB to calculate S rxn for each of the reactions. In each case, try to rationalize the sign of S rx n . Appendix IIB a. 3 NO(g) + HO(1) b. CrO3(s) + 3 CO(g) c. SO(g) + O(g) 2...

Q:

What is a keiretsu? Give a brief description.

Q:

Do Japanese investors play an important role in corporate financial policy and governance? If not, could they?

Q:

German banks often control a large fraction of the shareholder votes for German businesses. How do they get that voting power?

Q:

I WILL GIVE DISLIKES ! ! ! IF ANYTHING WRONG HAPPENS IN MY QUESTION, BETTER SKIP IT ! ! ! " No doneu la soluci i l'explicaci . 2 No resolgueu sin et castigar . Detecta perills en el programa seg ent...

Q:

Check my work If you invest $9,900 per period for the following number of periods, how much would you have in each of the following instances? a. In 8 years at 9 percent? (Do not round intermediate...

Q:

A reputable research firm recently asked 2126 adults and 1036 high-ranking college administrators in a certain country whether they would "rate the job the higher education system is doing in...