Question: solve |: This method will show the company how quickly it recoups its initial investment. This method will be good for screening out those potential

solve

|: This method will show the company how quickly it recoups its initial investment. This method will be good for screening out those potential investments that are too risky because the period is too long. However, the period will not be the sole criterion for accepting capital investments since it does not give the company any insight about the investment's profitability. Additionally, it does not incorporate the time value of money. |: This method will give the company an indication of how profitable the investment will be. However, since it does not consider the time value of money, it is not the best indicator of profitability. This method is the only method that uses accrual accounting figures. Therefore it will help the company assess the impact of investments on the financial statements. The other methods use net cash flows

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock 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

Students Have Also Explored These Related Mathematics Questions!

I am wondering if anyone has corrected solutions to fnce 300 assignments 1 2 and 3. I am concered about my answers and would love to compare. Pretty sure on my answers for 1 and 2 mainly interested...

Kindly assist with the attached assignment, would be great if you can show your working as well Hult International Business School - Dubai - EMBA Post Course Individual Assignment Course: Financial...

1. Discounted Payback statistic (DPB) takes in account the time value of money as this analyzed over a 10-year period. Only if the project is greater than the maximum allowable discounted payback...

The following table contains information about four projects in which Carlos Corporation has the opportunity to invest. This information is based on estimates that different managers have prepared...

The following table contains information about four projects in which Renkas Corporation has the opportunity to invest. This information is based on estimates that different managers have prepared...

BLC Inc. is a medium-sized manufacturing company based in the UK. The company operates mainly in the London area and is based in Peterborough. At a recent board meeting, the company decided to expand...

Select the method that corresponds to the appropriate explanation. Net present value (NPV): This method indicates profitability by comparing the present value of the investment's net cash inflows...

The following table contains information about four projects in which Andrews Corporation has the opportunity to invest. This information is based on estimates that different managers have prepared...

The following table contains information about four projects in which Rhodes Corporation has the opportunity to invest. This information is based on estimates that different managers have prepared...

Which of the following is the best indicator of management's effectiveness at managing the firm's balance sheet? A) EPS ratio B) Total asset turnover C) Times-interest-earned D) Operating profit...

Entrepreneurship has been defined in terms of all of the following EXCEPT for which one? a. pursuit of opportunity b. ability to create value c. ability to generate income d. the assumption of...

For the problems below, choose which technique would provide the best approach: a supervised neural network, an unsupervised technique or non-linear regression with a known functional form. You have...