of the Disadvantages of the method Discounted payback period is Ignores the time value of money Select one: True False

Q: Which of the following method is not based on concept of time value of money? A. Discounted payback…

A: Time value of money is based on the concept, that money you have today worth more than it in the…

Q: The discounted payback rule will give the same result as the NPV rule when the cut-off rule is…

A: Net present value (NPV): The net present value is a technique used for making the investment…

Q: Which of the following is not an advantage of the average rate of return method? a.includes the…

A: Average rate of return is a method of calculating return on the asset

Q: An increase in the discount rate will____ a. Reduce the present value of future cash flows b.…

A: Present Value of Cash Flows = Cash Flow(1+i)n

Q: What are the two drawbacks associated with the payback period a. The time value of money is…

A: Payback period is one of the capital budgeting techniques which represent the time or years cash…

Q: K One disadvantage of the payback method is that it does not consider the time value of money. 4 O…

A: Payback period is one of the simple method of capital budgeting which consider only period required…

Q: The payback period method has been criticized for not taking the time value of money into account.…

A: Payback period method:Payback period: This is the simplest and most widely employed traditional…

Q: One problem with free cash flow method is gives too much weight to countinung value. Do you agree

A: Answer :- YES

Q: The discounted payback method is better than the regular payback method because  The time value of…

A: Payback period is the amount of time required to recover initial investment. Regular payback period…

Q: With a decrease in time preference, the supply of loanable funds will increase.   Select one: True…

A: Loanable funds includes all forms of credit, such as loans, bonds, or savings deposits. There is an…

Q: Which of the following arguments about time line is right? Group of answer choices a)Time line can…

A: The compatibility between the time units and the related interest rate per unit of time is shown…

Q: One of the shortcoming of the payback method is that it ignores cash flows after the payback period.…

A: Payback method has serious disadvantages like it Ignores the time value of money.

Q: An increase in the discount rate will______ O a. Reduce the present value of future cash…

A: This question can be solved with the help of 2 examples. Example 1 Initial investment=15000 Discount…

Q: As the discount rate increases A. present value factors decrease B. Present value factors remain…

A: Solution: As the discount rate increases "present value factors decrease".

Q: Modes of extinguishing obligations when creditor abandons his right to collect.

A: You have asked four different multiple choice question and as our guidelines are concerned we…

Q: Which ones identify the disadvantages of the payback rule? A. Very simple and easy to apply. B.…

A: Solution: Payback period is one of the decision making criteria in capital budgeting. It measures…

Q: The payback period method has been criticized for not taking the time value of money into account.…

A: Discussion on payback period method:Payback period: It represents the period required to recover the…

Q: 3- Explain briefly demerits of Pay Back Period. One of the demerits of the pay back period method…

A: Pay back period is calculated to know the period within which the company expect to generate…

Q: Explain the payback period model and its two significant weaknesses. How does the discounted payback…

A: The payback period one of  the method of capital budgeting. It shows the required time taken to…

Q: O a. None of the above Ob. Decrease in Money Supply O C. Increase in Money Supply d. No Change in…

A: Solution: Credit Creation Multiplier is a multiple which shows that how much multiple times the…

Q: ding to the time value of money concept, also referred to as the present discounted value, is based…

A: Time value of concepts as the time period goes on due to the inflation goes on increasing and hence…

Q: disadvantages

A: Meaning of Discounted Cashflow Analysis Discounted cash flow (DCF) is a valuation method used to…

Q: there are two policies to consider when payment period is less than compounding period. These are…

A: When payment period is more than the compounding period for a single amount, there are an infinite…

Q: Which of the following is a disadvantage of the average rate of return method? a. fails to…

A: The question is asking about the disadvantages of the average rate of return method in accounting.…

Q: The discounted payback method considers the time value of money as well as the cash flows after the…

A: Introduction: This question is related to the concept of capital budgeting. It is nothing but an…

Q: Net present value is better than Payback period (PP)... A. because it is a simple method OB. because…

A: Solution:- Net Present Value (NPV) means the net present value of cash inflows after deducting…

Q: Why do some people say that MIRR should stand for Meaningless Internal Rate of Return?

A: Question is based on the concept of Business Finance

Q: Cash conversion cycle can be reduced by reducing the payables deferral period which will slow down…

A: The total number of days that a company takes to convert its resources into cash is known as the…

Q: Which of the following is NOT a limitation of the payback rule? O It does not consider cash flows…

A: In this question, we are required to determine the statement that does not represent the limitation…