Nevertheless, payback period determination may be considered an effective intermediate step in the computation of the after-tax rate of return. The conversion techniques must, of necessity, be simple in order to encourage the use of rate of return as the decision criterion rather than payback ...
It may be time for regulators and regulated energy companies alike to concentrate upon determining rates of return which are the most conducive to efficient development of energy resources, as opposed to the traditional concern for a return that is only fair. The difference between the two concepts...
C. Implicitly assumes that the firm is able to reinvest project cash flows at the firm's cost of capital. D. Is not a straightforward decision criterion. 正确答案:B 分享到: 答案解析: A. The Internal Rate of Return does consider the time value of money. B. The Internal Rate of Retur...
A weakness of the internal rate of return (IRR) approach for determining the acceptability of investments is that it A. Does not consider the time value of money. B. Implicitly assumes that the firm is able to reinvest project cash flows at the project's internal rate of return. C. Impl...
D. Implicitly assumes that the firm is able to reinvest project cash flows at the project’s internal rate of return. 正确答案:D 分享到: 答案解析: Answer (D) is correct . The IRR is the rate at which the discounted future cash flows equal the net investment (NPV = 0). One ...
If you follow the law, to create the sales value basis is possible in the rate of return on investment, rather than in the cost on the basis of assessment. Next, skip to step seven. Step six: youll only be here if you dont do step five. Stop selling and say, thank you very ...
Payback period: This is the time it takes for a project to regain the cost of its original investment. Accounting rate of return: This is the net accounting profit earned from an investment. It’s presented as a percentage of a capital investment. Net present value: This is the total am...
ChargeOut! produces a break-even charge-out rate that will return any specified after-tax real rate of return over the economic life of the capital equipment. Alternatively, given a negotiated charge-out rate, the model produces net present values and real and nominal rates of return before ...
This method emphasizes the relation between advertisement and sales. Sales are measured with advertising and without advertising. The rate of return provides a basis for advertising budgeting, as the available funds will have to be distributed among various kinds of internal ...
Therisk-free rateis therate of returnof an investment with no risk of loss. Most often, either the currentTreasury bill, or T-bill, rate or long-term government bond yield are used as the risk-free rate. T-bills are considered nearly free of default risk because they are fully...