What are the limitations of the payback period method for making capital budgeting decisions (e.g., whether to
Question:
What are the limitations of the payback period method for making capital budgeting decisions (e.g., whether to accept or reject a proposed investment)? Does the present value payback period overcome these limitations?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 44% (9 reviews)
The limitations of the payback period method for capital budgeting decisions are Ignores the time va...View the full answer
Answered By
BillClinton Muguai
I have been a tutor for the past 5 years. I have experience working with students in a variety of subject areas, including computer science, math, science, English, and history. I have also worked with students of all ages, from elementary school to college. In addition to my tutoring experience, I have a degree in education from a top university. This has given me a strong foundation in child development and learning theories, which I use to inform my tutoring practices.
I am patient and adaptable, and I work to create a positive and supportive learning environment for my students. I believe that all students have the ability to succeed, and it is my job to help them find and develop their strengths. I am confident in my ability to tutor students and help them achieve their academic goals.
0.00
0 Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
What are the limitations of the payback period as an investment decision criterion? What are its advantages? Why do you think it is used so frequently?
-
The decision to accept or reject a special order and the selection of a price for a special order are very similar decisions. Explain.
-
Describe the payback period method for making capital budgeting decisions.
-
How do researchers investigate the effectiveness of the integrated reporting initiative?
-
Water as saturated liquid at 200 kPa goes through a constant pressure heat exchanger as shown in Fig. P10.62. The heat input is supplied from a reversible heat pump extracting heat from the...
-
(a) Prepare general journal entries for the following transactions in the appropriate funds and General Capital Assets and General Long-Term Liabilities accounts of a county, the county school...
-
Tsingtao Companys balance sheet shows a stockholders equity book value (total common equity) of \($800,500.\) The firms earnings per share were \($3.50,\) resulting in a price/earnings ratio of...
-
Ethyl acetate has a vapor pressure of 118.3 mm Hg at 29.5C and a normal boiling point of 77.0C. Estimate the vapor pressure at 45C using (a) The Antoine equation and constants from Table B.4: (b) The...
-
18 years ago, I purchased 185 shares of a stock worth $14.25 per share. There was a 2:1 split, a 4:1 split, and a 3:1 split during that time period. Today the stock is worth $1.53 per share. If the...
-
This problem continues Problem 8. Use the Access_Practice.accdb database that you have been working on to complete the following tasks. a. Go to the Relationships screen and connect the five tables,...
-
Calculate the net after-tax cash flow effect of the following information: sales, $260; expenses other than depreciation, $140; depreciation expense, $50; marginal income tax rate, 35%.
-
The Midwest Division of the Paibec Corporation manufactures subassemblies used in Paibecs final products. Lynn Hardt of Midwests profit planning department has been assigned the task of determining...
-
Let G - (V, E), H = (V', E') be undirected graphs with f:V V' establishing an isomorphism between the graphs, (a) Prove that f-1 ; V V is also an isomorphism for G and H. (b) If a V, prove that...
-
Suppose you purchase a car for $25,000 with a 48 month loan from your credit union at 8% APR compounded monthly. a. Calculate your monthly payment. (worth 5 points) b. Create an amortization table....
-
Water and oil will form two separate layers when placed in the same container. What is the microscopic explanation for this macroscopic behavior? The strength of the bonds between like molecules is...
-
14) To purchase studio space, on April 3, 2025 a pianist takes out a 30-year loan of $120,000 at final payment is scheduled to be made April 3, 2055. The monthly payment is $1,142.79. an annual...
-
Draw the open circuit and short circuit characteristics using the data given below for a 150MW, 13KV, 0.85PF, 50Hz Synchronous generator. [CO1] Open circuit characteristic If (A) ...
-
A $10,000 bond with 16%/year, compounded quarterly (interest is paid every six quarter) is available in the market. The bond matures in 10 years. The closest PW of this bond if the purchaser can earn...
-
Give the formula for the correspondence between the non-equatorial part of the antipodal modal of the projective plane, and the plane z = 1. Discuss.
-
Differentiate the following terms/concepts: a. Personality types and money attitudes b. Planners and avoiders c. Moderating and adapting to biases d. "Perfectible judges" and "incorrigible judges"
-
Weida Surveying, Inc., provides land surveying services. During September, its transactions included the following: Sept. 1 Paid rent for the month of September, $4,400. Sept. 3 Billed Fine Line...
-
Weida Surveying, Inc., provides land surveying services. During September, its transactions included the following: Sept. 1 Paid rent for the month of September, $4,400. Sept. 3 Billed Fine Line...
-
In June 2011, Wendy Winger organized a corporation to provide aerial photography services. The company, called Aerial Views, began operations immediately. Transactions during the month of June were...
-
In addition to giving away money at the time of their death, individuals are allowed to give gifts of money during their lifetime. In 2022, they were allowed to give up to $16,000 per year to as many...
-
Bonnie Corp. sells a machine to a customer for $18,000 and uses the Installment Sales Method to account for the sale. The cost of the goods was $12,400. At the date of sale, Bonnie delivers the...
-
On March 1 , ABX Company s assets are $ 1 1 3 , 0 0 0 and its liabilities are $ 4 3 , 0 0 0 . On March 5 , ABX is fined $ 2 1 , 5 0 0 for failing emission standards. ABX immediately pays the fine in...
Study smarter with the SolutionInn App