Question: What are some criticisms of the payback method?

What are some criticisms of the payback method?

Step by Step Solution

★★★★★

3.55 Rating (169 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The major criticisms of the payback method are that it ... View full answer

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

Document Format (1 attachment)

Word file Icon

389-B-C-F-C-B (2083).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!

Q:

What are some criticisms of the way "employment" is measured?

Q:

What are some criticisms of the traditional budgeting model?

Q:

What are some criticisms of determinate sentencing?

Q:

Please process at your earliest convenience. I have enclosed the attached document and other required documents. Thank you for your help! Consider how Kyler Valley Spring Park Lodge could use capital...

Q:

One main criticism of the Payback method is: o It does not consider the return of an investment o It does not consider what happens after the Payback is reached o It does not consider the time value...

Q:

Question 22 1 pts (TRUE or FALSE?) As long as proposed capital budgeting projects are independent, both the NPV and IRR methods will produce the same accept/reject indication. TRUE FALSE Question 23...

Q:

All of the following are criticisms of the payback period method EXCEPT It ignores the time value of money. Cash flows occurring AFTER the payback period are ignored. It deals with accounting profits...

Q:

this chapter you will study capital budgeting decisions. Explain what you will learn. Identify and describe three typical cash outflows as described in the text. What could be unique about the first...

Q:

this chapter you will study capital budgeting decisions. Explain what you will learn. Identify and describe three typical cash outflows as described in the text. What could be unique about the first...

Q:

I address these questions in Video #1 (questions 1 and 2) and Video #2 (questions 3 and 4) from the Chapter 14 module. These are also discussed in your book. 1. The Payback method is not a true...

Q:

Imagine a study in which the independent variable is whether the room where participants are tested is warm (30 degrees) or cool(12 degrees) ?List three dependent variables that you might treat as...

Q:

Transactions for Adam Company for the Adam 2019 are presented below. 1. 1/1/2019 Issued ordinary shares in exchange for $99,000 cash. 2.5/2/2019 Purchased land costing $43,200, for cash. 3. 3/3/2019...

Q:

Harlan has a $ 4 0 , 0 0 0 excess business loss in the current year. The excess business loss is: a . Carried back two years only. b . Carried forward indefinitely. c . Carried back 2 2 years. d ....

Q:

E9-26 Computing the collection period for receivables Contemporary Media Sign Company sells on account. Recently, Contemporary reported the following figures: 2013 2012 Net Credit Sales $ 572,000 $...

Q:

On October 31, 2024, Alternative Landscapes discarded equipment that had a cost of $26,920. Accumulated Depreciation as of December 31, 2023, was $25,000. Assume annual depreciation on the equipment...

Q:

Alpha Communication purchased equipment on January 1, 2024, for $27,500. Suppose Alpha Communication sold the equipment for $20,000 on December 31, 2026. Accumulated Depreciation as of December 31,...

Q:

The comparative financial statements of Newton Cosmetic Supply for 2024, 2023, and 2022 include the data shown here: Requirements 1. Compute these ratios for 2024 and 2023: a. Acid-test ratio (Round...

Q:

The audiology department at Randall Clinic offers many services to the clinic's patients. The three most common, along with cost and utilization data, are as follows: Service Variable cost per...

Q:

Brief Exercise 15-9 Indigo Corporation has outstanding 18,000 shares of $5 par value common stock. On August 1, 2017, Indigo reacquired 200 shares at $76 per share. On November 1, Indigo reissued the...

Q:

Which of the following is CORRECT? Even if the pure expectations theory is correct, there might at times be an inverted Treasury yield curve. or If the yield curve is inverted, short-term bonds have...