Payback period as a means of measuring cash flows

Assignment Help Financial Management
Reference no: EM13731578

What are the problems associated with using the payback period as a means of measuring cash flows? What are the advantages of using the payback period to evaluate cash flows and are there any circumstances under which using the payback might be appropriate?

Reference no: EM13731578

Questions Cloud

Describe the independent variables and blocking variables : Describe the independent variables, blocking variables, dependent variables, and extraneous variables. Explain how you plan to deal with issues related to internal and external validity. Be specific
Identify and explain key external factors : Identify and explain key external factors that affect the passenger airline industry. Explain the major airline market segments by applying the marketing concepts of segmentation, targeting, and positioning
Calculate monthly commissions for n salespersons : Understanding of arrays - arrayLists, objects, classes, sorting and searching. Develop a java application program for such a scenario that a local department store manager wants to use it for calculating monthly commissions for N salespersons.
Federal law impacts healthcare organizations : Do you think that quality would be adversely impacted if the growth in medical technology were to be constrained in the United States. If costs are reduced, and more people could have access, do you think that this is a reasonable trade-off
Payback period as a means of measuring cash flows : What are the problems associated with using the payback period as a means of measuring cash flows? What are the advantages of using the payback period to evaluate cash flows and are there any circumstances under which using the payback might be appro..
Corporate bond with an annual coupon : Five years ago, Highland, Inc. issued a corporate bond with an annual coupon of $7,000, paid at the rate of $3,500 every six months, and a maturity of 25 years. The par (face) value of the bond is $1,000,000. Recently, however, the company has run in..
What are the basic need-satisfying benefits : How and What? What are the basic need-satisfying benefits? Does a competitor's product fit a need this product/service does not provide
Demonstrate the effectiveness of the training : Imagine that headquarters leadership approved your recommendation for delivering the training and you are now charged with the task of proving the training is effective. What procedure would you put in place to measure the results of the training..
Salary increases at average annual rate : Upon graduating from college, you make an annual salary of $66,356. You set a goal to double it in the future. If your salary increases at an average annual rate of 8.13 percent, how long will it take to reach your goal?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the yield to maturity-coupon rate on the bond

A municipal bond has 5 years until maturity and sells for $5,156. If the coupon rate on the bond is 5.88 percent, what is the yield to maturity? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

  Floating exchange rate

Does the IMF have more control over pegged exchange rate prior to 1971, than it does today over floating exchange rate?

  Year-end the yield curve will be flat

One-year bonds yield 7%, two-year bonds yield 8%, three-year bonds and greater maturity bonds all yield 9%. You are choosing between one-, two-, and three-year maturity bonds all paying annual coupons of 8%, once a year. Which bond should you buy if ..

  Using the internal rate of return

Tall trees inc is using the Internal Rate of Return The IRR when evaluating projects. You have to find the IRR for the companys project. The initial outlay for the project is $450,000. The project will produce the following after tax cash inflows of

  Result of depositing a fixed instalment amount

What factor would you use to determine the future lump sum amount that could be withdrawn from a bank as a result of depositing a fixed instalment amount for "n" years? State its name and show its standard notation.

  Determine whether or not you believe that applersquos

use the internet to research the apple corporation its current position and reputation regarding ethical and social

  What is the usual pattern of cash flows for a share of

What is the usual pattern of cash flows for a share of preferred stock? How does the market determine the value of a share of preferred stock, given these promised cash flows?

  Calculate the amount of the firms gross profit

Evening Story Corporation has sales of $4,732,270; income tax of $558,166; the selling, general and administrative expenses of $264,444; depreciation of $328,532; cost of goods sold of $2,840,400; and interest expense of $153,129. Calculate the amoun..

  Face value and yield to maturity

Calculate the price of Bond A 2 years from now if it has a 7% annual coupon matures in 12 years and has $1000 face value and yield to maturity is 9%.

  Rate for four-year-maturity treasury securities

Suppose that the current one-year rate (one-year spot rate) and expected one-year Tbill rates over the following three years (i.e., years 2, 3, and 4, respectively) are as follows:

  Yield to maturity remains unchanged

A bond has a par value of $1,000, a time to maturity of 20 years, and a coupon rate of 7.20% with interest paid annually. If the current market price is $720, what will be the approximate capital gain of this bond over the next year if its yield to m..

  What will bling diamonds cash dividend be in seven years

Four years ago, Bling Diamond, Inc., paid a dividend of $1.95 per share. Bling paid a dividend of $2.37 per share yesterday. Dividends will grow over the next five years at the same rate they grew over the last four years. Thereafter, dividends will ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd