Payback period - Study guides, Class notes & Summaries

What is true about the "payback period" ? - ANSWER The payback period does not consider the time value of money. As the cost of capital increases - ANSWER Fewer projects are accepted. The reason cash flow is used in capital budgeting is because: - ANSWER cash outlays need to be evaluated in terms of the present value of the resultant cash inflows.

Corporate Finance UPDATED ACTUAL Questions and CORRECT Answers a company that utilizes the MACRS system of depreciation - CORRECT ANSWER- will have a greater taxs shield in year two of a project than it would have if the firm had opted for straight-line depreciation a project has a discounted payback period that is equal to the required payback period. Given this which of the following statements must be true? - CORRECT ANSWER- The projec tmust also be acceptable under the payback ru...

a company that utilizes the MACRS system of depreciation o :## will have a greater taxs shield in year two of a project than it would have if the firm had opted for straight-line depreciation a project has a discounted payback period that is equal to the required payback period. Given this which of the following statements must be true? o :## The projec tmust also be acceptable under the payback rule AND The project must have a profitability index that is equal to or greater than 1 a p...

BFIN 320 FINAL EXAM QUESTIONS WITH ALL CORRECT ANSWERS A stock has a beta of 1.5. The expected return on the market is 10% and the risk-free rate is 4%. What is the expected return for the stock? - Answer-.04 + 1.5 (.10 - .04) = .13 The Security Market Line: - Answer-Security Market Line illustrates CAPM prediction for the required expected total return for various values of beta *If the expected return is greater than the required return estimated with CAPM, the expected return will...

Fina Actual Exam Questions With Reviewed 100% Correct Detailed Answers Guaranteed Pass!! 1. Anne is considering two independent projects with 2-year lives. Both projects have been assigned a discount rate of 13 percent. She has sufficient funds to finance one or both projects. Project A costs $38,500 and has cash flows of $19,400 and $28,700 for Years 1 and 2, respectively. Project B costs $41,000, and has cash flows of $25,000 and $22,000 for Years 1 and 2, respectively. Wh...

BFIN 300 Final Review Latest Update Graded A+ Net Present Value (NPV) the sum of the present values of expected future cash flows from an investment, minus the cost of that investment. If NPV is negative you will reject the investment Payback Period Rule an investment is acceptable if its calculated payback period is less than some pre-specified number of years Discounted Payback Period the length of time required for an investment's discounted cash flows to equal its initial co...

Test Bank for Managerial Accounting, 16th Edition Update by Ray H. Garrison The Test Bank for Managerial Accounting, 16th Edition Update by Ray H. Garrison is an essential resource for students studying managerial accounting. This test bank provides a comprehensive set of practice questions designed to reinforce the concepts and techniques covered in Garrison's widely used textbook. With over 16 editions, Garrison's text continues to be a leading authority in the field of managerial accounting,...

MHA 625 Health Care Financial Management 1 Exam 1 Latest Questions and Answers 2023-2024. MHA 625 Health Care Financial Management 1 This exam is divided into three sections: - Section A (20 points): Perform the mechanics of accounting processes included in the creation of recording transactions via journal entries. - Section B (45 points): Recognize and construct the three-main corporate financial statements. - Section C (35 points): Analyze the financial statements. Section A: Record...

Complete Solutions Manual for Basic Finance An Introduction to Financial Institutions, Investments and Management, 13th Edition by Herbert B. Mayo ; ISBN13: 9780357714744....(Full Chapters included Chapter 1 to 29) ***Ch 1,2,3,5,12 solutions not included****1. An Introduction to Basic Finance. 2. The Role of Financial Markets and Financial Intermediaries. 3. Investment Banking. 4. Securities Markets. 5. The Federal Reserve. 6. International Currency Flows. 7. The Time Value of Money. 8. R...

APSC 221 Question and answers already passed 2024/2025 APSC 221 Sunk costs should be included in an engineering economic analysis - correct answer False Decisional equivalence is a consequence of the ________ on the part of a decision maker among available choices. a. indifference b. market analysis c. study of general economic activity levels within an industry d. understanding - correct answer a. indifference T/F: Efficiency means achieving the organizatio...