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Ne4ueva [31]
3 years ago
13

Which one of the following statements is correct? Question 19 options: A longer payback period is preferred over a shorter payba

ck period. The payback rule states that you should accept a project if the payback period is less than one year. The payback period ignores the time value of money. The payback rule is biased in favor of long-term projects. The payback period considers the timing and amount of all of a project's cash flows.
Business
1 answer:
saveliy_v [14]3 years ago
5 0

Answer:

The payback period ignores the time value of money.

Explanation:

This could primarily be classified to be amongst the major disadvantages of the payback period that it ignores the time value of money which is a very important business concept. In the other hand, the payback period disregards the time value of money. It is determined by counting the number of years it takes to recover the funds invested. Some analysts favor the payback method for its simplicity. Others like to use it as an additional point of reference in a capital budgeting decision framework.

The payback period does not account for what happens after payback, ignoring the overall profitability of an investment.

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A company receives $290, of which $15 is for sales tax. The journal entry to record the sale would include a
Inga [223]

Answer:

Explanation:

Cash.         290

     Revenue.             275

     Sales tax payable.  15

5 0
3 years ago
The combined American Marketing Association's 2004/2007 definitions of marketing used in the textbook defines marketing as______
Scilla [17]

Answer:

Option B is correct. According to the Combined American Marketing Assiciation 2004, marketing is the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large.

Explanation:

This defination clearly denies the illegal activities or unethical trading by adding the phrase that it will benefit society at large not to a single entity.

6 0
3 years ago
Hibiscus Co has a debt-equity ratio of 0.80. The firm is analyzing a new project which requires an initial cash outlay of $300,0
morpeh [17]

Answer:

$321,600

Explanation:

debt equity ratio = debt / equity

since the debt to equity is 0.8, that means that for every $ invested from equity, $0.80 will be borrowed. If the new project requires an initial cash outlay of $300,000:

  • then $300,000 / $1.80 = $166,667 will be new equity
  • and $133,333 will be new debt

total cost of initial outlay including flotation costs = ($166,667 x 1.09) + ($133,333 x 1.0495) = $181,667 +  $139,933 = $321,600

flotation costs include all the costs associated with issuing new stocks or taking new debt.

8 0
3 years ago
What are the five economic activities?
slava [35]

The five economic activities are:

producing, exchanging, consuming, saving, and investing.


100% Correct on Gradpoint :)

4 0
3 years ago
He structure of sandal mart consists of people with similar specialties put together in formal groups, such as the marketing, ac
nalin [4]
Sandal Mart has a functional structure. It is the most common type of organization nowadays, it is usually divided on the areas of marketing, IT department and finance. This type of structure can be assortment of structures, which decide how the association will work and perform.
6 0
3 years ago
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