The payback criterion has problem(s) like Select one: O A. It considers the time value of money O B. It ignores the cash outflows or inflows after the payback period and the time value of money O C. It considers the inflows and outflows after the Payback Period O D. It considers all the cash outflows or inflows of the project
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- This method solves for the interest rate that equates the equivalent worth of a project's cash outflows (expenditures) to the equivalent worth of cash inflows (receipts or savings). O A. Payback Period O B. Profitability Index O C. Rate of Return O D. MARRWhich 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 flowsAn advantage of the internal rate of return method is that a.it considers the time value of money. b.it can rank proposals of equal lives. c.it considers the cash flows of the investment. d.All of these choices are correct.
- The discounted payback method considers the time value of money as well as the cash flows after the payback.Group of answer choices A.false B. trueWhen 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 lowOne of the benefit of the pay back period is that it focuses on the timing of the project`s benefits and costs, even though it does not adjust the cash flows for the time value of money Select one: True False
- 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.IRR1. Kindly break down how you got terminal cashflow at the end of the project. 2. Explain how you arrived at Net Present Value. What is the formula used?A project can have as many different internal rates of return as it has: changes in the sign of the cash flows. cash inflows. cash outflows. periods of cash flow.
- Question 1 Which of the following statements is False regarding the payback period method: OA. Use as a tool in making screening decision. OB. The Cash flows after the payback period are ignored. OC. Shorter payback period indicates a more profitable project. O D. Consider the time value of money.A rate of return is... O A. the return which is required for an investment O B. the current worth of a future stream of cash O C. the length of time it takes to recover the initial investment of a project O D. the sum of a time series of discounted cash inflows and outflowsThe NPV method determines how much the present value of cash inflows exceeds the present value of costs. True False