The discounted payback method is better than the regular payback method because  The time value of money is considered. The rate of return is allowed to vary. The concept is based on irregular time periods. None of the above.

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: LO3 Discuss the discounted payback rule and some of its shortcomings. LO4 Explain accounting rates…

A: The payback period is the amount of time it takes for the investment's benefit to recoup its cost,…

Q: of the Disadvantages of the method Discounted payback period is Ignores the time value of money…

A: Step 1 The discounted payback period (DPB) is the time it takes for a project's original cost to…

Q: How can we find the present worth of any uneven stream of payments?

A: The question is based on the concept of present value of uneven cash flow

Q: Hello, I having trouble getting the right answer for Option B "net present value," and the…

A: Internal rate of return refers to the discount rate at which the net present value of the investment…

Q: One way to offset a higher probability of default would be to have high quality collateral thus…

A: Default refers to failure of an obligation that is generally related to repayment of a loan or funds…

Q: The value of a series of payments is similar to the maturity value in a compounding transaction.…

A: Compound interest: It shall be measured on the principal sum and also on the accrued interest of…

Q: When using the internal rate of return method, interest payments should OA. not be discounted OB. be…

A: While using Internal rate of return calculation we have to discount each element of income and cost…

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: Multiple Choice Time and future values are inversely related, all else held constant. Interest rates…

A: Money has time value, value of money changes with time due to the interest rate and it is not same…

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: which of the following is true? a lower payment amount results in a higher FV, other things equal.…

A: Future value is the value of the money invested today at some future date on the basis of the…

Q: time value of money to general situations where compounding is induced by growth, inflation, or…

A: Time Value of Money is one of the most important concepts of finance when it comes to the…

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: then these assets vary in

A: The constant growth model is a method for valuing the share price of a stock. It calculates the…

Q: The only effect of a change in the investment of accounts receivable is the extra interest to be…

A: Company provide credits to customers and later recover the money from customers these are account…

Q: What is the purpose and workings of the Monetary policy transmission mechanism (MPTM)? What are the…

A: Monetary transmission technique or the mechanism is referred to as the process through which 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: Since we usually assume positive interest rates in time value analyses, the present value of a sum…

A: In time value analysis, positive interest rates are typically assumed. When calculating the present…

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: simple payback period will be less than the payback period considering compounded interest rate (for…

A: 1. Simple Payback Period: The simple payback period is the time it takes to recover the initial…

Q: The lower the discount rate used: Select one: A. the bigger the present value of future cash flows…

A: Step 1:The payback duration for a traditional project is always less than the discounted payback…