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Arlecino [84]
4 years ago
8

Which of the following statements indicates a disadvantage of using the regular, or conventional, payback period for capital bud

geting decisions? Check all that apply. A. The payback period does not take into account the cash flows produced over a project’s entire life. B. The payback period does not take into account the time value of money effects of a project’s cash flows. C. The payback period is calculated using net income instead of cash flows.
Business
1 answer:
svp [43]4 years ago
5 0

Answer:

A. The payback period does not take into account the cash flows produced over a project’s entire life. B. The payback period does not take into account the time value of money effects of a project’s cash flows.

Explanation:

The payback period method calculates the amount of time that is taken to recoup an investment made on a project.

Payback period is calculated using cash flows.

The disadvantages of payback period are :

1. It doesn't take into consideration the time value of money.

2. It doesn't take into account the cash flows after original investment has been recouped.

The discounted payback corrects for these disadvantages by using a discounted cash flow.

You might be interested in
Difference between listening and hearing?​
hodyreva [135]

Answer:

Simple. When you listen, you put an effort in to it. It is a conscious mental process where you direct you will power. Whereas hearing is all about you being NOT deaf (haha!) more technically Hearing means the ability to perceive sounds. Often, this is an unconscious mental process.

Explanation:

As we understood in the answer, there are two types of mental activities. Conscious and Unconscious. Conscious ones are those you put an effort to, like reading a book, studying, playing a video game, etc. Listening is like this. your attention and focus is on during listening!

Unconscious mental processes are those that you don't put an effort to and often happens even without you noticing that they are happening. hearing is one such thing, the faculty of perceiving the sound.

3 0
3 years ago
Read 2 more answers
Underground Clothing is a zero growth firm that has expected earnings before interest and taxes of $56,700, an unlevered cost of
koban [17]

Answer:

$230,825

Explanation:

VU = [$56,700 × (1 - .35)] / .162

VU= $56,700×0.65/.162

VU=36,855/.162

VU = $227,500

VL = $227,500 + .35($9,500)

VL= $227,500+$3,325

VL= $230,825

7 0
4 years ago
Mocha Company earned net income of $ 105,000 during the year ended December ​31, 2018. On December ​15, Mocha declared the annua
lapo4ka [179]

Answer:

The answer is given below;

Explanation:

Retained Earnings   (125,000*2%) Dr.$2,500

Dividend payable                                            Cr.$2,500

Retained Earnings  (62,000*.25)  Dr.$15,500

Dividend Payable                                         Cr.$15,500

5 0
3 years ago
What is the balance of the manufacturing overhead account and is overhead underapplied or overapplied at the end of the year?.
baherus [9]

The balance of the manufacturer overhead account is Credit of $30,000, overapplied.

  • credit of $30,000, overapplied.

<h3>Underapplied Overhead vs. Overapplied Overhead</h3>

Underapplied overhead is the opposite of overapplied overhead. Overapplied overhead occurs when expenses incurred are actually less than what a company accounts for in its budget. This means that a company comes in under budget and achieves a lower amount of overhead costs during the accounting period.

Therefore, the correct answer is as given above.

learn more about overhead account from here:

brainly.com/question/26396695

3 0
3 years ago
Based on your understanding of P/E ratios, in which of the following situations would the average trailing P/E ratio (current pr
bija089 [108]

Answer:

The outlook for the economy and the markets is for an improvement.

Explanation:

p/e ratio = price / earning

the higher the equity, the lower the ratio

If the p/e ratio is expected to be higher, it means that the equity would have to be lower this year than next year .

this implies that earnings would be higher next year and p/e ratio would be lower. this means there is a positive economic outlook

8 0
3 years ago
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