WebbAccounts Receivables Acquisition Activity Based Costing Adjusting Accounts for Financial Statements Advanced Business Economics Advertising and Public Relations … WebbMerits of payback period: 1. Provides an indication of a project’s risk and liquidity. 2. Easy to calculate and understand. 3. Quick solution 4. Useful in case of uncertainty. Demerits of payback period: 1. Ignores the Time value of money. 2. Ignores CFs occurring after payback period. 3. No specification of acceptable payback. 4.

The payback method considers cash flows that occur both

WebbThe payback method assumes that all cash inflows are reinvested to yield a return equal to a. the discount rate. c. the internal rate of return. b. the hurdle rate. d. zero. As a capital … WebbThe cash inflows are ₱146,000, ₱155,200, ₱165,000, and ... considers cash flows, and measures risk exposure. Its weaknesses include lack of linkage to the wealth maximization goal, failure to consider time value explicitly, and the fact that it ignores cash flows that occur after the payback period. Because it gives explicit ... chrysler multi point inspection form

Often asked: Do you include depreciation in payback period? - De ...

WebbCash payback method (also called payback method) is a capital investment evaluation method that considers the cash flows as well as the cash payback period. Cash payback … WebbTherefore, the timing of cash inflows and outflows affects the present value of each cash flow, which affects the NPV. True: When comparing the payback and discounted payback from a financial point of view, the discounted payback method is preferred over the payback method because it takes into account the time value of money. http://www.accountingmcqs.com/which-of-the-following-is-a-strength-of-the-paybac-mcq-4844 describe about basic concepts of alu design