The payback period method of assessing potential investment projects is badly flawed, but it is widely used

Question:

The payback period method of assessing potential investment projects is badly flawed, but it is widely used nonetheless. Why is it so widely used?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Business Finance

ISBN: 9781292134406

11th Edition

Authors: Eddie McLaney

See More Books

Question Posted: Mar 05, 2024 07:00 AM

See More Questions

Consider incompressible flow at a volume rate Q toward a drain at the vertex of a 45 wedge of width b, as in Fig. P4.33. Neglect gravity and friction and assume purely radial inflow. (a) Find an...
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
A woman flies from Phoenix to Denver (a distance of 800 mi) at a rate 40 mph faster than on the return trip. If the total time of the trip is 9 hrs, what was her rate going to Denver, and what was...
During the late nineteenth century in the United States, many farmers borrowed heavily to buy land. During most of the period between 1870 and the mid-1890s, the United States experienced mild...
Derive the order of the error with respect to the sin and cosine approximations. sin(x)=x-x/3!+x/5!-x'/7!+... cos(x) = 1-x/2!+x/4!-x16!+.... Approximation sin (1/N)=1/N error sin (1/N)=0 (?) cos...
Water is to be moved from one large reservoir to another at a higher elevation as indicated in Fig. P5.116. The loss of available energy associated with $2.5 \mathrm{ft}^{3} / \mathrm{s}$ being...
Consider a venturi with a throat-to-inlet area ratio of 0.8, mounted on the side of an airplane fuselage. The airplane is in flight at standard sea level. If the static pressure at the throat is 2100...
What are some things that are shown on a right-of-way map? 2. What Florida Department of Transportation District is Valencia College or the Central Florida Region in? 3. Name three things you will...
For the network of Fig. 7.105, determine: a. IDQ and VGSQ b. VDS c. VD. DO GS (Th) (on) = 4 mA GS
What is the fundamental flaw of using the internal rate of return method? Is it a problem in practice?
What is the key point about the net present value approach to investment decision making that makes it the most correct method, in theory?
The crescent Moon always points toward the Sun. You can use this fact to estimate your latitude. Down by the equator (0? latitude), the setting crescent Moon lies flat on the horizon, while up close...
Olivia and Tatiana form Jen Co. earlier this year. Olivia contributed services worth $24,000 and property worth $1,000 and Tatiana contributed property worth $25,000. Each received 25 shares of Jen...
What is the discount factor that is equivalent to a 5% discount rate?
A friend asks to borrow $54 from you and in return will pay you $57 in one year. If your bank is offering a 5.8% interest rate on deposits and loans: a. How much would you have in one year if you...
Due to your good credit, your bank reduces the interest rate on your $14,000 loan from 9.3% to 7% per year. Thanks to the change, how much will you save in interest this year?
You have $900 and a bank is offering 4% interest on deposits. If you deposit the money in the bank, how much will you have in one year?
Adam Kimble is a model employee. He has not missed a day of work in the last five years. He even forfeits his vacation time to make sure that things run smoothly. Adam literally does the work of two...
From a medical tourist perspective, compare Shouldice with the traditional hospital in terms of the key factors of competition. Using Table 15-3, why would Shouldice attract patients from outside the...
Linpet Ltd is to be incorporated on 1 June. The opening statement of financial position (balance sheet) of the business will then be as follows: During June, the business intends to make payments of...
Linpet Ltd is to be incorporated on 1 June. The opening statement of financial position (balance sheet) of the business will then be as follows: During June, the business intends to make payments of...
Linpet Ltd is to be incorporated on 1 June. The opening statement of financial position (balance sheet) of the business will then be as follows: During June, the business intends to make payments of...
A wind farm costs $32 million to install in year 0 and produces 50 million kWh per. year. It has a 20-year investment lifetime and is discounted at 5%. All-inclusive operating cost amounts to...
Recently, Country X has seen a gradual increase in the unemployment rate, the stock market has shifted from a bull to a bear market, and the gross domestic product has shrunk over the last two...
A mass m 1 = 4.3 kg rests on a frictionless table and connected by a massless string over a massless pulley to another mass m 2 = 3.4 kg which hangs freely from the string. When released, the hanging...

The payback period method of assessing potential investment projects is badly flawed, but it is widely used

Question:

Step by Step Answer:

There seem to be two basic possibilities Some users do not real...View the full answer

Business Finance

Students also viewed these Business questions