Which of the three limitations of the Payback Rule can be overcome with a modification to it? Gives equal weight to all cash flows arriving before the cutoff period Does not consider cash flows after the payback period Biases the firm against long-term projects in favor of short-term ones

Question

03-03-2020
Business

contestada

Which of the three limitations of the Payback Rule can be overcome with a modification to it? Gives equal weight to all cash flows arriving before the cutoff period Does not consider cash flows after the payback period Biases the firm against long-term projects in favor of short-term ones

Respuesta :

Otras preguntas

For a project in his Geometry class, Tyler uses a mirror on the ground to measure the height of his school building. He walks a distance of 14.65 meters from hi

4. You want to take out a fully-amortizing 30-year mortgage. You can afford monthly payments of $600 each. The interest rate is 9%. How much money can you borro

Convert 1.5% to decimal and a fraction. Show and explain your method.

In a few sentences, describe the molecular polarity and the intermolecular forces present in ammonium lauryl sulfate.

Which step should happen after conducting initial research? be exploring the topic more deeply refining the list of research questions developing questions to g

Help and explain pls and ty

ssons sts & Quizzes essages What mistake(s) can you identify in this graph? 1. Poor scale, wasted space II. No units for independent variable III. No units

A hollow pipe is submerged in a stream of water so that the length of the pipe is parallel to the velocity of the water. If the water speed doubles and the cros

2019 2018 2017 2016 2015 Sales $ 282,880 $ 270,800 $ 252,600 $ 234,560 $ 150,000 Cost of goods sold 128,200 122,080 115,280 106,440 67,000 Accounts receivable 1

. It is known that the glucose level in blood of diabetic persons follows a normal distribution model with mean 106 mg/100 ml and standard deviation 8 mg/100 ml

ewomazinoade ewomazinoade · Answer 1 · 2020-03-04T02:03:32+01:00

Answer:

Gives equal weight to all cash flows arriving before the cutoff

Explanation:

The payback period measures how long it takes for the amount invested in a project to be recovered from a project.

A project with a shorter pay back period is favoured over projects with longer payback periods.

The payback period gives equal weights to all cash flows before arriving at a cut Off. The discounted payback period remedies this by discounting cash flows.

I hope my answer helps you

heavenandholiness heavenandholiness · Answer 2 · 2020-03-04T02:18:55+01:00

Answer:

Gives equal weight to all cash flows arriving before the cutoff period

Explanation:

The discounted payback gives equal weight to all cash flows arriving before the cut off period because it takes into account the time value of money by discounting the cashflows.

The discounted payback period is a capital budgeting method used to determine the level of profitability of a project by discounting its cashflows in order to get their present values.

The discounted payback period gives the actual number of years it takes to return the initial capital outlay, by discounting future cash flows and recognizing the time value of money.