Question: The discounted payback method - is simpler and more reliable than the payback period -discounts a project's initial cost -is as reliable as NPV because

The discounted payback method

- is simpler and more reliable than the payback period

-discounts a project's initial cost

-is as reliable as NPV because both methods use discounted cash flow

-uses an arbitrary cutoff period

-ignores a project's initial cost

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 Finance Questions!

Q:

Which of the following statements is CORRECT? a. The IRR method appeals to some managers because it gives an estimate of the rate of return on projects rather than a dollar amount, which the NPV...

Q:

A1 A f Build a Model A B D E F G H K 1 Build a Model 11/26/18 2 Chapter: 10 3 Problem: 23 4 5 Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash...

Q:

Velos Ltd is a manufacturer of high-end tools for the engineering industry. The mission statement of the company declares that it is dedicated to maximising the value of its shareholders and, since...

Q:

Question 1 (1 pont) Use the following information: A project creates incremental cash flows as the following. The cost of capital is 15%. This project costs $2 million. Use the NPV approach to...

Q:

Use the following information: A project creates incremental cash flows as the following. The cost of capital is 15%. This project costs $2 million. Use the NPV approach to determine whether we...

Q:

QUESTION 5 Morelos Ltd is a manufacturer of high-quality tools for those working in the engineering industry. The mission statement of the company declares that it is dedicated to maximising the...

Q:

Which of the following statements are true? Select 4 that apply. a. Discounted payback method of capital appraisal ignores cash flows beyond the discounted payback period. b. The net present value is...

Q:

How do I solve the Mirr, discounted payback method, after tax salvage, dividend payout ratio, and cash receipts I have the answers I just need to know how to solve these questions the easiest way and...

Q:

Here is full project, i cant show you full picture because my screen is small for that i divide on two screens. Please i need your help . I'm pray!! help me please with that work. I get problem to...

Q:

If in the opinion of a given investor a stock's expected return exceeds its required return, this suggests that the investor thinks Multiple Choice 3 onanos) o management is probably not trying to...

Q:

Problem 1: Use R to write a for-loop that prints the following output: 1 3 5 7 9 11 Write a while loop that prints the same output as the for-loop for Problem 1. Write an if-statement nested inside...

Q:

Differentiate between the different types of filtering. URL filtering, Keyword filtering, and Dynamic content filtering

Q:

Which of the following is NOT the tax benefit of real estate investment? Group of answer choices Annual NOI deduction 1 0 3 1 exchange Property tax deduction Mortgage interest deduction

Q:

Which of the following statements are true about Red Hat OpenShift Data Foundation? ( Select all that apply. ) ( Choose all correct answers ) It provides highly scalable, production - grade...