List , Explain and give advantages and disadvantages of the following methods a.Pay back Period b.Accounting Rate of...

60.1K

Verified Solution

Question

Finance

List , Explain and give advantages and disadvantages of thefollowing methods
a.Pay back Period
b.Accounting Rate of Return
c.Net Present Value
d.Profitability Index
e.Internal Rate of Return

Answer & Explanation Solved by verified expert

3.8 Ratings (663 Votes)

a Strengths of Payback Period 1 Easy to calculate and less time consuming Weakness 1 It doesnt consider cash flows after Payback period 2 It does not include time value of money b Advantages of ARR 1 It is easy to calculate and to understand also 2 It takes into consideration net income which is ignored by other factors 3 It does not include time value of money 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: Flex AI - Your personal assistant for all your inquiries!

Become a Member

List , Explain and give advantages and disadvantages of the following methods a.Pay back Period b.Accounting Rate of...

60.1K

Verified Solution

Question

Finance

List , Explain and give advantages and disadvantages of thefollowing methods
a.Pay back Period
b.Accounting Rate of Return
c.Net Present Value
d.Profitability Index
e.Internal Rate of Return

Answer & Explanation Solved by verified expert

Get Answers to Unlimited Questions

Membership Benefits:

Transcribed Image Text

Other questions asked by students

List , Explain and give advantages and disadvantages of the following methods a.Pay back Period b.Accounting Rate of...

60.1K

Verified Solution

Question

Finance

List , Explain and give advantages and disadvantages of thefollowing methodsa.Pay back Periodb.Accounting Rate of Returnc.Net Present Valued.Profitability Indexe.Internal Rate of Return

Answer & Explanation Solved by verified expert

Get Answers to Unlimited Questions

Membership Benefits:

Transcribed Image Text

Other questions asked by students

List , Explain and give advantages and disadvantages of thefollowing methods
a.Pay back Period
b.Accounting Rate of Return
c.Net Present Value
d.Profitability Index
e.Internal Rate of Return