Discounted payback period - Study guides, Class notes & Summaries

Net Present Value (NPV) - Answer-the difference between the present value of a project's future cash flows and its cost. Estimating cost is usually straight forward; however, estimating future cash flows can be tricky. discounted cash flow (DCF) valuation - Answer-finding the market value of assets or their benefits by taking the present value of future cash flows EX: estimating what the future cash flows would trade in for in today's dollars What is the Benefit of NPV? - Answer-It measu...

WGU C722 Test Bank Project Management, Top Exam Questions and answers, Approved. A Guide to Project Management Body of Knowledge (PMBOK Guide) The project management standard developed by the Project Management Institute. Benefit measurement methods A type of decision model that compares the benefits obtained from a variety of new project requests by evaluating them using the same criteria and comparing the results. Co-located When team members work together at the same physical locati...

CFA Level 1 - 101 Must Knows 368 Questions with Verified Answers Addition Rule of Probability - CORRECT ANSWER ADDITION: P(A or B) = P(A) + P(B) - P(AB) Roy's Safety First Criterion - CORRECT ANSWER Safety First Ratio = (E(R) - Rₜ) / σ Larger ratio is better If (Rₜ) is risk free rate, then it becomes Sharpe Ratio Sharpe Ratio - CORRECT ANSWER Sharpe Ratio = (E(R) - RFR) / σ Larger ratio is better If (Rt) is higher than RFR, then it becomes Safety First Ratio Centra...

E) The project's cash inflows equal its cash outflows in current dollar terms - Answer-I)A project has a net present value of zero. Which one of the following best describes this project? A) The project has a zero percent rate of return. B) The project requires no initial cash investment. C) The project has no cash flows. D) The summation of all of the project's cash flows is zero. E) The project's cash inflows equal its cash outflows in current dollar terms D) Increasing the project's in...

MGMT 310 EXAM PRACTICE - Net Present Value and Other Investment Criteria. A project has an initial cost of $27,400 and a market value of $32,600. What is the difference between these two values called? A. net present value B. internal return C. payback value D. profitability index E. discounted payback 2. Which one of the following methods of project analysis is defined as computing the value of a project based upon the present value of the project's anticipated cash flows? A. consta...

MGT 8803 Exam II Study Guide Questions and Answers Rated A+ Shareholders only receive money after what is done? suppliers have been paid wages to workers have been paid. interest to bondholders have been paid. taxes have been paid. Capital Budgeting The process of determining exactly which assets to invest in and how much to invest; also called capital expenditure decision or capital investment decision. Future Value (FV) the amount to which a cash flow or series of cash flows will grow ove...

A Guide to Project Management Body of Knowledge (PMBOK Guide) - correct answer The project management standard developed by the Project Management Institute. Benefit measurement methods - correct answer A type of decision model that compares the benefits obtained from a variety of new project requests by evaluating them using the same criteria and comparing the results. Co-located - correct answer When team members work together at the same physical location Constrained optimization mod...

INF3708 Assignment 3 solution 2024: You and Sarita performed the project’s proposal “qualitative risk analysis” (Schwalbe, 2019, p. 470). An unsurprising risk factor is that beneficiaries are mostly located in areas of low socio- economic status, which may be a contributing factor to an order not being delivered to a beneficiary. 1.1.Discuss two risks that the delivery service might potentially encounter when delivering a meal to a low socio-economic area. (4) 1.2.Recommend risk mit...

GMS 450 Midterm Questions and Answers 100% Pass project - Answer- an interrelated set of activities with a definite starting and ending point, which results in a unique outcome for a specific allocation of resources PMI project - Answer- a temporary endeavour undertaken to create a unique product or service Project Management - Answer- The application of knowledge, skills, tools, and techniques to project activities to meet project requirements New Product Development - Answer- use new p...

Five Key Principals of Capital Budgeting - ANSWER-1) Decisions are based on incremental cash flows. Sunk costs are not considered. 2) Cash flows are based on opportunity cost 3) Timing of the cash flows is important 4) Cash flows are analyzed on an after-tax basis 5) Financing costs are reflected in the required rate of return, not in the incremental cash flows Payback Period - ANSWER-Number of years it takes to recover the initial cost of the project. Ignores time value of money and any ...