Question: The NPV improves the discounted payback method by not only considering the time value of money, but also cash flows after the payback period. A)

The NPV improves the discounted payback method by not only considering the time value of money, but also cash flows after the payback period.

A) true

B) false

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:

The NPV improves the discounted payback method by not only considering the time value of money, but also cash flows after the payback period. True or False

Q:

The NPV improves the discounted payback method by not only considering the time value of money, but also cash flows after the payback period. Group of answer choices true false

Q:

QUESTION 1 Which of the following are advantages of the payback method of project analysis? a. Ignores time value of money, ease of use. b. Liquidity bias, ease of use. c. Considers time value of...

Q:

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...

Q:

Question 12 pts Project cash flows are considered conventional or normal if _____. the first (one or more) cash flows are negative and the rest are positive there are more positive than negative cash...

Q:

1. Which of the following statements is incorrect? a. The beauty of the net present value is that it reports the percentage increase in employees' wealth that would result from acceptance of a...

Q:

1. One type of compensation provided by the time value of money is compensation for expected inflation True False 2. The interest that accrues on both the principal and the past unpaid accrued...

Q:

8. Which of the following are disadvantages of the payback method of project analysis? a. Considers time value of money, liquidity bias b. Liquidity bias, arbitrary cutoff point c. Liquidity bias,...

Q:

Identify the precautionary reasons for using payback as an inilisi screering method or mpplemental tool rather than as a primary toof to select an alternative. There is no return of investment in the...

Q:

Which of the following statement is incorrect? Capital rationing occurs when management sets a dollar limit on new project spending. The relationship between the NPV of a project and discount rate is...

Q:

H. Brown Ltd. produces a range of central heating systems for sale to builders. As a result of increasing demand for the business's products, management has decided to expand production. The cost of...

Q:

A 0.2-m3 rigid tank initially contains saturated refrigerant- 134a vapor at 1 MPa. The tank is connected by a valve to a supply line that carries refrigerant-134a at 1.4 MPa and 60C. The valve is now...

Q:

Which of the following is the best example of systematic risk? Multiple Choice A soymaker hes to recall its sop - selling toy. Com prices increase due to increased demand for alhernative fuela. A...

Q:

MSI s educational products currently are sold without any supplemental materials. The company is considering the inclusion of instructional materials such as an overhead slide presentation, potential...

Q:

Have you defined the situation fairly and accurately?

Q:

What impact will this message have on the people who receive it, or who might be affected by it?

Q:

Will the message achieve the greatest possible good while doing the least possible harm?