What are your thoughts on why payback and IRR are more frequently used than NPV, when evaluating

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

Question:

What are your thoughts on why payback and IRR are more frequently used than NPV, when evaluating projects?

Related Book For answer-question

Project Management A Managerial Approach

ISBN: 978-0470533024

8th edition

Authors: Jack R. Meredith, Samuel J. Mantel Jr.

See More Books

Posted Date: Nov 30, 2018 09:32 AM

See More Questions

what are your thoughts on the division of responsibility between individuals and businesses in terms of sharing the burden for taxation
1. A manufacturer uses a particular product at a constant rate of 10,000 pieces per year, and wants to produce this product with a setup cost of $5,000 which is incurred with every lot he produces....
What are your thoughts about doing everything right and the project still failing?
Five separate projects have calculated rates of return of 8, 11, 12.4, 14, and 19% per year. An engineer wants to know which projects to accept on the basis of rate of return. She learns from the...
Let Ax = b be any consistent system of linear equations, and let x1 be a fixed solution. Show that every solution to the system can be written in the form x = x1 + x0, where x0 is a solution Ax = 0....
The data in the following table come from an article by Bethel et al. (1985). All subjects are asthmatics. For the model with FEV1 as the response and HEIGHT, WEIGHT, and AGE as the predictors, a....
Draft tubes as shown in Fig. P12.60 are often installed at the exit of Kaplan and Francis turbines. Explain why such draft tubes are advantageous. Figure P12.60 -Draft tube
World Class Work Shoes had the following balances at December 31, 2016, before the year-end adjustments: The aging of accounts receivable yields the following data: Requirements 1. Journalize World...
Olive You applies manufacturing overhead at a rate of $0.40 per kilowatt hour (kWh) of electricity. Olive You's production facility used 125,000 kWh of electricity during January. The following...
Implied Volatility. Replicate the Implied Volatility Smile Figure on Page 12 of LN3, using current Call options data on the S&P500 (SPX) maturing on January 20, 2023. Please state the assumptions you...
Using current and authentic references from 2018 to date, outline the importance and the challenges of Women's involvement in Top Management and or Leadership within the Business sector, including...
The year-end financial statements of Cobra Tax Services are provided below. Service revenue Expenses: Salaries Utilities Insurance Supplies Net income COBRA TAX SERVICES Income Statement $ 74,500 $...
You graduated from the university and started working in a financial intermediary. You are looking at different stocks listed on Borsa Istanbul and trying to select the ones to form a portfolio for...
Schedule of Cost of Goods Manufactured Sydney Company reported the following amounts for October: Beginning raw materials inventory $144,000 Beginning work-in-process inventory 252,000 Beginning...
Cullumber Company started business on January 1, 2024. Some of the events that occurred in its first year of operations follow: Transactions 1. Equipment that cost $208,400 was purchased on February...
1. Identify critical points and determine the stress elements. 2. Apply stress transformation theory to solve for the principle stresses at the most critical point(s) identified. Use either the...
10. First, lets look at the working decision of an individual. max{(1-1)+(1-1)w 1; +T_) subject to 1, 0 where is the tax rate and T is the transfer received from the other person. With the same...
Evaluate how many lines there are in a true rotational spectrum of CO molecules whose natural vibration frequency is w = 4.09 1014 s1 and moment of inertia I = 1.44 1039 g cm2.
You are selling the newest product from ADP Payroll Solutions. You have been in contact with the customer for 3 months already, and the potential customer has agreed to meet with you eventually. You...
Was the life cycle for this project S-shaped, J-shaped, or something else? Considering just the purpose of the river dredging as a project itself, what was the shape of its life cycle?
The yearly demand for a seasonal, profitable item follows the distribution below: Demand (units) Probability 1,000 ........ .20 2,000 ........ .30 3,000 ........ .40 4,000 ........ .10 A manufacturer...
How is creativity controlled?
Motor vehicles are necessarily non-current (fixed) assets when: A. They are intended for continuing use in the business. B. They are more than one year old. C. They are parked with the handbrake on....
Explain the meaning of capital maintenance.
The four conditions of IAS 11 [see Section 8.4.4] provide entirely adequate safeguards for the use of the percentage-of-completion method for long-term contracts. When these requirements are met,...

What are your thoughts on why payback and IRR are more frequently used than NPV, when evaluating

Question:

Expert Answer:

Payback period is the measure of liquidity It measures ... View the full answer

Project Management A Managerial Approach

Students also viewed these accounting questions