Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 5. what is the difference between the payback peri

5. What is the difference between the payback period and the discounted payback? 6. Define the Average...

70.2K

Verified Solution

Question

Finance

5. What is the difference between the payback period and thediscounted payback?

6. Define the Average Accounting Return (AAR). What are thedisadvantages of the AAR?

7. What is the Internal Rate of Return (IRR)? What is the IRRrule? How is the IRR calculated?

8. Do the NPV rules and IRR rules lead to identical investmentdecisions? If so, under what circumstances?

Answer & Explanation Solved by verified expert
4.2 Ratings (615 Votes)
5 The difference between payback and the discounted payback is that the discounted payback period takes into account the time value of money hence it is a more reliable measure 6 The AAR is calculated as the Net income initial cost of the asset It decides which project to    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

5. What is the difference between the payback period and thediscounted payback?6. Define the Average Accounting Return (AAR). What are thedisadvantages of the AAR?7. What is the Internal Rate of Return (IRR)? What is the IRRrule? How is the IRR calculated?8. Do the NPV rules and IRR rules lead to identical investmentdecisions? If so, under what circumstances?

Other questions asked by students

Q

Describe how antigen binding sites of BCRs or TCRs are formed, how they are similar and...

Biology
Q

Water flows in a horizontal pipe of d1=100 mm with a velocity wt=1m/s and pressure p1=90...

Mechanical Engineering
Q

Which of the following does not appear to have any health benefits?a.resveratrolb.Vitamin Ec.green tead.pantothenic acid

Biology
Q

A parallel piate capacitor is filled with two dielectrics as shown in the diagram The...

Physics
Q

Related to Checkpoint 6 6 Present value of annuities and complex cash flows You are...

Basic Math
Q

V 5 5 5 5 5 5 31 5 5 5 5 A B C...

Basic Math
Q

Solve the equation for solutions in the interval 0 2x by first solving for the...

Calculus
Q

Factor the trinomial x 12x 35 Select the correct choice 12x 35

Calculus
Q

The company has a product that is sold at a selling price of 50 dinars...

Accounting
Q

Transfer Pricing at Absorption Cost Please provide a detailed and well articulared response....

Accounting
Q

At the current minimum required rate of return, the net present value of an investment...

Accounting
Q

What are the four phases of the business cycle? Describe each.

Finance