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11 months ago

Which one of the following statements is correct concerning the payback rule?

1 answer:

7 0

The correct concerning the payback rule is rule is flawed because it ignores all cash flows after some arbitrary point in time.

Payback period in capital budgeting refers to the time required to recover funds spent on an investment or to reach breakeven. Example: If at the beginning of year 1 he invests $1,000 and at the end of year 1 and his second year he earns $500, it pays for itself within 2 years.

The number of years it will take to recover the money invested. For example, if it takes 5 years to recover the cost of an investment, the payback period is he 5 years.

Payback period is defined as the number of years required to recover the original cash investment. In other words, the period during which a machine, plant, or other investment has generated sufficient net income to cover its investment costs.

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Accompanying the bank statement was a debit memorandum for an NSF check received from a customer. This item would require an adj

tamaranim1 [39]

Answer:

The correct answer is debit accounts receivable, credit cash.

Explanation:

Note debit is a receipt that a company sends to its client, in which it is notified that it has charged or debited a certain sum or value in its account, for the concept indicated in the same note. This document increases the value of the debt or account balance, whether due to an error in billing, interest for late payment, or any other circumstance that means an increase in the balance of an account.

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2 years ago

Stanley hart invested in a municipal bond that promised an annual yield of 6.7 percent. the bond pays coupons twice a year. what

shtirl [24]

The effective interest rate is given by

$r= \left(1+\frac{i}{t}\right)^t-1$

Given that the <span>bond yeilds an annual yield of 6.7 percent and pays coupons twice a year.

The effective interest rate is given by:

$r= \left(1+\frac{0.067}{2}\right)^2-1 \\ \\ =(1+0.0335)^2-1 \\ \\ =(1.0335)^2-1=1.0681-1 \\ \\ =0.0681=6.81\%$ </span>

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2 years ago

Mark and Kate are establishing a fund for their son's college education. They would like $60,000 in the fund at the end of 10 ye

katen-ka-za [31]

Answer:

The lump sum amount to be deposited should be $27,020.67

Explanation:

Data provided in the question:

Future value = $60,000

Time, t = 10 years

Interest rate, r = 8% = 0.08

Compounded monthly i.e number of periods n = 12

Now,

Future value = Amount deposited × $\left( 1 + \frac{r}{n} \right)^{\Large{n \times t}}$

Therefore,

on substituting the respective values, we get

$60,000 = Amount deposited × $\left( 1 + \frac{0.08}{12} \right)^{\Large{12 \times 10}}$

$60,000 = Amount deposited × ( 1.00667 )¹²⁰

$60,000 = Amount deposited × 2.220522

Amount deposited = $60,000 ÷ 2.220522

Amount deposited = $27,020.67

Hence,

The lump sum amount to be deposited should be $27,020.67

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2 years ago

Disposable personal income is A. personal income minus indirect business taxes. B. national income minus depreciation. C. person

Anni [7]

Answer:

C. personal income minus personal taxes.

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3 years ago

A net worth statement, insurance plan, and a budget are all part of a _____. saving and investing plan financial plan savings ac

Vera_Pavlovna [14]

<h3><u>Answer;</u></h3>

Financial plan

<h3><u>Explanation;</u></h3>

A net worth statement, insurance plan, and a budget are all part of a Financial plan.
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2 years ago

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