Which of the following statements concerning the payback period, is not true? a. The payback period measures the time that a project will take to generate enough cash flows to cover the initial investment.incorrect b. the payback period involves a simple method c. the payback period takes into account the time value of money d. the payback period ignores cash flows

Q: Which of the following is an advantage of using the payback period method for project selection?…

A: The objective of the question is to identify the advantage of using the payback period method for…

Q: Assume that both Projects A and B have normal cash flows, with one outflow followed by a series of…

A: IRR(Internal ROR) is the rate at which NPV(Net Present Value) of a project is zero. At IRR, PV of…

Q: A project's IRR: A) All of these answers are correct. B is the average rate of return necessary to…

A: IRR is the rate that would result in net present value of future cash flows equal to exactly Zero.

Q: If the sum of the incremental cash flows is negative, what is known about the rate of return on the…

A: Incremental Analysis: The method to measure the viability of different options related to business…

Q: which of the following statement is true>? 1. return on equity is the ratio of total assets to…

A: Capital budgeting is a way to evaluate profitability of new projects or investment by using various…

Q: Is it worth the effort to estimate daily project cash flows?  Would doing so be helpful in the…

A: Cashflows are usually estimating yearly and then discounted at an appropriate discount rate

Q: Sophisticated capital budgeting techniques do not A. examine the size of the initial outlay. B.…

A: Capital budgeting techniques are used to understand the feasibility/acceptability of long term…

Q: Disadvantage of the payback method include: Answer choices are below: A) does not consider cash…

A: The correct answer is D) all of the above. The payback method indeed has several disadvantages. It…

Q: Payback period is the time in which the initial cost of an investment is expected to be recovered…

A: The payback period is the time it takes to repay the cost of an investment or to reach the breakeven…

Q: Which of the following is true of the cash payback period? a.the longer the payback, the longer the…

A: Payback period is the period under which the amount of investment is expected to be recovered.…

Q: ve determined the profitability of a planned project by finding the present value of all the cash…

A: Present value of cash flow is related to the discount rate and the period of cash flow of the…

Q: Which of the following statements is false? (You may select more than one answer.)a. The payback…

A: Cash payback method: Cash payback period is the expected time period which is required to recover…

Q: The Modified Internal Rate of Return (MIRR) is based on : Reinvestment rate, financing rate, and the…

A: MIRR is a discounting rate that compares the present value of future cash inflows to zero year…

Q: A rate of return is... O A. the return which is required for an investment O B. the current worth of…

A: Solution:- Rate of return means the rate at which the investor wants the return.

Q: 1. Which of the following is not true? Group of answer choices The method in which we calculate a…

A: Capital Budgeting techniques and methods are used to measure and evaluate the potentiality of…

Q: Pls help with below homework.

A: Payback period refers to the amount of time it takes for a business or firm to recover the initial…

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 most widely used traditional methods of evaluating…

Q: One of the following methods are not a method to evaluate projects: Return on investment Discounted…

A: Capital budgeting: It implies to the process of evaluating different projects based on their…

Q: A project is rejected under the net present value method when: a. The percentage return is greater…

A: Capital budgeting is a process used to gauge if an investment should be made in a particular project…

Q: Which of the following statements is CORRECT? Assume that the project being considered has normal…

A: Internal rate of return (IRR) is the discount rate of a project which makes its NPV=0. It is a…

Q: The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate…

A: Modified Internal Rate of Return (MIRR) is a metric used to measure the potential profitability of…

Q: Which of the following are significant flaws with the Payback Period Method? (Select all that apply)…

A: Payback period method is a capital budgeting method which will help in finding time period within…

Q: Methods that ignore the time value of money in capital investment appraisal include which of the…

A: Net present value – Net present value is the difference between present value of cash inflows of…

Q: All of the followings are True when the net present value method is used to choose between two…

A: Net present value is the excess of present value of cash flows over cash outflows or initial…

Q: 4. Modified internal rate of return (MIRR) The IRR evaluation method assumes that cash flows from…

A: MIRR refers to modified internal rate of return. There are some inherent shortcomings of IRR and…

Q: Which of the following cash flows are not considered in the calculation of the annual cash-flow for…

A: Proceeds from selling an old asset which is being replaced by a new asset It does not impact the…

Q: Which of the following statements is False regarding the payback period method: DA Use as a tool in…

A: Statement -D is false.As payback period method is Non- discounting cash flow criteria…

Q: All of the following statements regarding NPV are true EXCEPT: a. A positive NPV indicates the…

A: Net Present Value : It is the net of present value of cash inflow and present value of outflow.…

Q: When evaluating projects using internal rate of return,?  A. projects having lower early-year cash…

A: Internal rate of return is the rate of return at which the net present value is equal to zero.…

Q: Depending on the cash flow assumption, should the project must use continuous cash flow? why?

A: In continuous discounting and continuous cash flows, the assumption is that the cash stream happens…

Q: 4 The following statements refer to the accounting rate of return (ARR)  The ARR is based on the…

A: The accounting rate of return (ARR)  reflects the expected percentage of return on an investment…

Q: The most accurate way to analyze the profitability of an investment is to compute the payback…

A: Payback period is the period for time taken of project to repay the initial investment. Payback…

Q: return

A: MIRR or the modified internal rate of return assumes that the company's cash flows can be reinvested…

Q: Which of the following statements is false The net present value method considers the time value of…

A: This is based on the principles of capital budgeting tools.   We use different capital budgeting…

Q: The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate…

A: MIRR refers to modified internal rate of return. MIRR, as a capital budgeting tool, seeks to remove…

Q: A project can have as many different internal rates of return as it has: O changes in the sign of…

A: The internal rate of return (IRR) is used to measure the profitability of investments. It is the…

Q: A project's present value can be decreased by, I. decreasing the required discount rate (required…

A: There are various reasons for decreasing the present value of the project some of them are as…

Q: Which of the following is a disadvantage of the IRR project evaluation method? Question 5Select…

A: IRR is also known as Internal Rate of Return.. It is a capital budgeting technique which helps in…

Q: Which of the following best explains the limitations of using WACC as a discount rate for evaluating…

A: Thanks for the Question: Bartleby's Guideline “Since you have asked multiple question, we will solve…

Q: Which of the statements below is TRUE regarding capital budgeting? O A. Capital budgeting deals with…

A:

Q: Can replacement chain analysis be used if project cash flows are different each time the project is…

A: Several statements have been given regarding the suitability of replacement chain analysis,  if…

Q: Which of the following statements is CORRECT? Assume that the project being considered has normal…

A: IRR stands for Internal Rate of Return, which is a financial metric used to evaluate the…

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: None

A: Option a: This option is  incorrect because time value of money is the expression of the value of…

Q: An analysis of a proposal by the net present value method indicated that the present value of future…

A: The objective of the question is to understand the implications of a positive net present value…

Q: The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate…

A: Modified internal rate of return (MIRR) is the upgraded version of the internal rate of return,…