Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. what information does the payback period provide?

What information does the payback period provide? Suppose you are evaluating a project with the...

50.1K

Verified Solution

Question

Finance

imageimage

What information does the payback period provide? Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the project's net present value (NPV). You don't know the project's initial cost, but you do know the project's regular, or conventional, payback period is 2.50 years. If the project's weighted average cost of capital (WACC) is 10%, the project's NPV (rounded to the nearest dollar) is: $401,373$349,020$296,667$383,922 Which of the following statements indicate a disadvantage of using the regular payback period (not the discounted payback period) for capital budgeting decisions? Check all that apply. The payback period does not take the time value of money into account. The payback period is calculated using net income instead of cash flows. The payback period does not take the project's entire life into account

Answer & Explanation Solved by verified expert
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

Other questions asked by students

Accounting
1.2K views

Exercise 14-16 On January 1, 2017, Larkspur Company makes thetwo following acquisitions. 1. Purchases...

Basic Math
1.2K views

One generator is placed in standby redundancy to the main generator. The faliure rate of each...

Psychology
1.2K views

Look at your phone and find the most recent text message you received. How is this...

Basic Math
1.2K views

Which of the following are graphs of polynomia functions check all that apply K

Basic Math
1.2K views

A ball is dropped from the top of a building that is known to be...

Statistics
1.2K views

arvas X Solve the problem 9 This Quiz Will Be Submitted In Thir The data...

Calculus
1.2K views

sin x Recall that tan x cos x Using integration by substitution to derive the...

Calculus
1.2K views

CURRENT OBJECTIVE Use the washer method to find the volume of a solid of revolution...

Accounting
1.2K views

slosh cleaning corporation brinda servicios a clientes residenciales y comerciales. slosh espera los siguientes resultados...

Accounting
1.2K views

Entries for Selected Corporate Transactions Nav-Go Enterprises Inc. produces aeronautical navigation equipment. Nav-Go Enterprises' stockholders'...

Accounting
1.2K views

A company has outstanding 312 $1,000 bonds, each convertible into 22 shares of $9 par...

Accounting
1.2K views

The accounting definition of depreciation is the decrease in value or selling price of an...