Although payback period method is a simple one and is very easy to understand and calculate, it has its own drawbacks. It does not take into...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our experts can answer your tou...
What is the rationale for the payback method? A significant disadvantage of the payback period is that it: a) Is complicated to explain. b) Increases firm risk. c) Does not properly consider the time value of money. d) All of the above. e) None ...
Describe the payback period method. How should the effect of a change in accounting estimate be accounted for? A. By prospectively applying the change to current and future periods. B. By retrospectively applying the change to amounts reported in financial statements of pri...
2. State the two main methods that you need to be able to calculate and use for appraising Capital Investment 3. Calculate Payback Periods and list the advantages and disadvantages of this method 4. Explain what is meant by the ‘time value of money’. Evaluate Capital Investments using the ...
aThere are four methods that widely used in world to evaluate investment opportunities: payback period (PP),accounting rate of return (ARR),net present value (NPV),internal rate of return (IRR)(Peter Atrill 2012: p123). In the following, will evaluate these four methods to explain whether ...
General speaking, if a project need to be accepted, the payback period should shorter than the maximum payback period which set by business. 页是时间为报答,可能解释最初的投资多久可能回来。 一般讲话,如果项目需要被接受,回收期比由事务设置的最大回收期如果短。 [translate] ...
Describe the payback period method. What to you understand by indirect cost? Explain in your own words and give a numerical example of the allocation of multiple support departments to a production department utilizing the direct, step down, and reciprocal methods. In additio ...
B) Is the payback method of any real usefulness in capital budgeting decisions? Explain. Payback Period: Difficulties & Practical Usefulness: In any Capital Budgeting decision, it is important for the business to know within what ...
Payback Period:The payback period of capital budgeting is applied to estimate the time that will lapse before an investor can recover the initial cost from the expected future cash flows. The payback period is simple to compute as it is a non-discounting method and ...
The payback period is classified under the non-discounting methods of capital budgeting as it does not use the time value of money factor in calculations. The discounted payback period is an improvement of the regular payback method. Both methods estimate the time...