The payback rule can be best stated as:
WebbTranscribed image text: 12. The payback rule can be best stated as: A) An investment is acceptable if its calculated payback period is less than or equal to some pre-specified … Webb14 maj 2024 · 4. The payback rule can be best stated as: A) An investment is acceptable if its calculated payback period is less than some prespecified number of years. B) An …
The payback rule can be best stated as:
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Webb4 dec. 2024 · We can compute the payback period by computing the cumulative net cash flow as follows: Payback period = 3 + (15,000 * /40,000) = 3 + 0.375 = 3.375 Years * Unrecovered investment at start of … Webb3 dec. 2024 · The payback period is a good way to measure the investment risk. The project with a shorter payback period is considered less risky than a project with a longer …
Webb20 okt. 2024 · Formula. Now, let's take a look at the formula necessary for payback analysis. The payback formula is simple. The payback period is the total investment … Webb18 apr. 2016 · “The best use of payback, in my opinion,” says Knight, “is to quickly check on the numbers before deciding whether to investigate the investment further.” Payback is …
Webb10 juni 2024 · To make sure to get the precise payback period, we will need to determine the missing cash flow by the end of year 3 by the cash flow received in year 4. This is … Webb17 nov. 2024 · Machine A costs $20,000 and your firm expects payback at the rate of $5,000 per year. Machine B costs $12,000 and the firm expects payback at the same …
WebbThe payback rule can be best stated as: An investment is acceptable if its calculated payback period is less than some prespecified number of years. An investment should …
WebbThe answer will be – = ($30,000 / $5,000) Payback period = 6 years Thus, it may be concluded that the purchase of such furniture & fittings isn’t desirable as its payback … ora and the wild wipWebbDifficulty: Basic Learning Objective: 09-02 The payback rule and some of its shortcomings. Ross - Chapter 09 #9 Type: Definitions. 10. The payback rule can be best stated as: A. … ora acronymWebbPayback period = 3+ (50) / (300)= 3 + 1/6 = 3.17 Years. In brief, PB calculated this way is an interpolated estimate between two of the period end-points (between the end of Year 3 … portsmouth nh grocery squareWebb20 sep. 2024 · Disadvantages Of Payback Method. 1. Ignores Time Value of Money. The method ignores the time value of money. A project’s cash inflow might be irregular. … ora a wellington new zelandWebb5 apr. 2024 · The payback period is an evaluation method used to determine the time required for the cash flows from a project to pay back the initial investment. For … portsmouth nh gmcWebb15 mars 2024 · The payback period can apply to personal investments such as solar panels or property maintenance, or investments in equipment or other assets that a … ora banda historical innWebb10 maj 2024 · The payback period is expressed in years and fractions of years. For example, if a company invests $300,000 in a new production line, and the production line … ora a sydney australia