User Account

All Pages

Discuss the problem associated with the payback method

Assignment Help Accounting Basics
Reference no: EM131526129

Question: 1. A problem associated with the payback method is:

a. it usually requires less time to compute than that required by the net present value method

b. it doesn't consider cash flows after the payback period

c. it assumes that all cash flows are invested at the cost of capital

d. it uses the time value of money concept

2. Which of the following describes the impact of a real option on the value of an investment opportunity?

A) real options add value to investment opportunities only when exercised

B) real options add value to investment opportunities

C) real options add value to investment opportunities but they are already included in the discount rate so they should not be added as incremental cash flows.

D) real options increase the costs of investment opportunities because suppliers charge extra for these options.

3. If projects X and Y are independent, which should be accepted?

A) Project X only

B) Project Y only

C) Neither project

D) Both projects

4. If projects X and Y are mutually exclusive, which should be accepted?

A) Project X only

B) Project Y only

C) Neither project

D) Both projects

Reference no: EM131526129

Questions Cloud

Why poor knowledge management reduces the effectiveness : Explain why poor Knowledge Management reduces the effectiveness of organizational processes. How can we assess the direct impact of Knowledge Management?
How much should fox reduce the npv of this project : Analysis of an expansion project Companies invest in expansion projects with the expectation of increasing the earnings of its business.
Explain cooleys argument in genetically modified organisms : Explain Cooley's argument in Genetically Modified Organisms and Business Duties. What would Cooley say about the activities of Monsanto and related in the case.
What is the present value of investments : What is the present value of investments A, B and C of the appropriate discount rate is 10%?
Discuss the problem associated with the payback method : Which of the following describes the impact of a real option on the value of an investment opportunity?
How digital technology impact on childrens creativity : How digital technology impact on childrens creativity - Authoritative and persuasive, Ideas are sophisticated
Which of the following represents a research hypothesis : Three of the following questions lend themselves well to research. Which of the following represents a well-written applied research problem?
Estimated beta coefficient of company : What is the estimated beta coefficient of your company? What does this beta mean in terms of your choice to include this company in your overall portfolio?
What did you learn about prosocial behavior : What did you learn about prosocial behavior from this exercise in light of the material in this module's readings and lecture material

Reviews

Write a Review

Accounting Basics Questions & Answers

  How many units should waco produce during june

Waco keeps 10% of the next months sales as ending inventory. How many units should Waco produce during June?

  Time for him to intervene and make decisions for his sons

CASE STUDY (Process of Accounting). Rajiv and Rahul were twin brothers. Rajiv was interested in computers and would find time to always work on computers either at college or at his friend's place.

  Distinguish between upstream and downstream sales

What is the essential procedural difference between work paper eliminating entries for unrealized intercompany profit when the selling affiliate is a less than wholly owned subsidiary and such entries when the selling affiliate is a parent company..

  When the allowance method of recognizing bad debt expense

when the allowance method of recognizing bad debt expense is used the entry to record the write off of a specific

  Mortgage-interest and amortization

A house worth $70,000 is purchased with a down payment of $20,000 and a mortgage amortized over 20 years. If the interest rate is 14% compounded semi- annually;

  Fraud important in a fraud investigation

Why is knowing why an individual committed fraud important in a fraud investigation?

  Peachtree allows you to add vendors and process vendor

peachtree allows you to add vendors and process vendor invoices for payment. what would be the transaction cycle? hint

  Business competing in a global business environment

Discuss whether or not the current reporting and disclosure requirements for publicly traded companies are sufficient to inform investor and stakeholders about the company's performance.

  Three publicly traded companies

Three publicly traded companies

  The companys activity-based costing system

Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates:

  Incremental analysis and decision making

Crone Enterprises uses a word processing computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices.

  Report for cost of goods manufactured

Agale Combines, Inc. has $40,000 of ending finished goods inventory as of December 31, 2014. If beginning finished goods inventory was $25,000 and cost of goods sold was $75,000, how much would Agale report for cost of goods manufactured?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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