The discounted payback period is the length of time until the sum of the discounted cash flows equals Blank______. Multiple choice question. the sum of initial investment and undiscounted cash flows the difference between initial investment and undiscounted cash flows the sum of undiscounted cash flows the initial investment

The discounted payback period is the length of time until the sum of the discounted cash flows equals Blank______. Multiple choice question. the sum of initial investment and undiscounted cash flows the difference between initial investment and undiscounted cash flows the sum of undiscounted cash flows the initial investment

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 13MC: Which of the following discounts future cash flows to their present value at the expected rate of...

See similar textbooks

Similar questions

When using the NPV method for a particular investment decision, if the present value of all cash Inflows Is greater than the present value of all cash outflows, then _______ . A. the discount rate used was too high B. the investment provides an actual rate of return greater than the discount rate C. the investment provides an actual rate of return equal to the discount rate D. the discount rate is too low
The IRR method assumes that cash flows are reinvested at _________. A. the internal rate of return B. the companys discount rate C. the lower of the companys discount rate or Internal rate of return D. an average of the internal rate of return and the discount rate
The NPV method assumes that cash inflows associated with a particular investment occur when? A. only at the time of the initial Investment B. only at the end of the year C. only at the beginning of the year D. at any of these times
The discounted payback period is the length of time until the sum of the discounted cash flows equals Blank______. Multiple choice question. the sum of undiscounted cash flows the sum of initial investment and undiscounted cash flows the initial investment the difference between initial investment and undiscounted cash flows
Define the term reinvestment rate and describe how it differs for any cash flow series between (1) a PW value calculated at the MARR, and (2) the IROR value i*.
The ____ of an investment is the period of time for the ____ to equal the initial cash outlay. a. profitability index; present value of the cash inflows b. payback period; cumulative cash inflows c. payback period; present value of the cash inflows d. None of these are correct
Please answer the following question. In this method, the company compares the amount spent on the investment with the discounted expected future cash inflows. a.Payback b.NRV c.Investment d.IRR
The formula for calculating net present value (NPV) involves: a) Adding the initial investment and future cash flows b) Discounting future cash flows to the present and subtracting the initial investment c) Dividing future cash flows by the initial investment d) Multiplying future cash flows by the discount rate
The payback period is the amount of time required for an investment to generate cash flows to recover its Blank______. Multiple choice question. initial cost required rate of return internal rate of return present value of future cash flows
Determining the future value of one or more present day cash flows is known as ________. A. disinvesting B. annuitizing C. discounting D. compounding
This method evaluates the return of an investment by dividing the annual average income by the average investment, Select one: a. Discounted Approach b. Simple rate of return Method c. Cash Payback Method d. Internal Rate of Return Method
When faced with cash flows of equal magnitude occurring at different points in time, we prefer to: a. Receive it later than sooner b. Receive it sooner than later c. Pay it sooner than later d. Simplify the cash flows by summing them to determine the net cash flow.