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IRISSAK [1]
3 years ago
15

Which of the three limitations of the Payback Rule can be overcome with a modification to it? Gives equal weight to all cash flo

ws arriving before the cutoff period Does not consider cash flows after the payback period Biases the firm against long-term projects in favor of short-term ones
Business
2 answers:
gogolik [260]3 years ago
7 0

Answer:

Gives equal weight to all cash flows arriving before the cutoff 

Explanation:

The payback period measures how long it takes for the amount invested in a project to be recovered from a project.

A project with a shorter pay back period is favoured over projects with longer payback periods.

The payback period gives equal weights to all cash flows before arriving at a cut Off. The discounted payback period remedies this by discounting cash flows.

I hope my answer helps you

kari74 [83]3 years ago
4 0

Answer:

Gives equal weight to all cash flows arriving before the cutoff period

Explanation:

The discounted payback gives equal weight to all cash flows arriving before the cut off period because it takes into account the time value of money by discounting the cashflows.

The discounted payback period is a capital budgeting method used to determine the level of profitability of a project by discounting its cashflows in order to get their present values.

The discounted payback period gives the actual number of years it takes to return the initial capital outlay, by discounting future cash flows and recognizing the time value of money.

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Scott Rolen, major league third baseman, agrees to defer $5 million from his salary this year for 10 years at 7 percent compound
iVinArrow [24]

Answer:

What will be the amount of this annuity payment?

$711.888

Explanation:

N Monthly principal interest Net value

                           5.000.000

1 711.888 361.888 350.000 4.638.112

2 711.888 387.220 324.668 4.250.893

3 711.888 414.325 297.562 3.836.568

4 711.888 443.328 268.560 3.393.240

5 711.888 474.361 237.527 2.918.879

6 711.888 507.566 204.322 2.411.313

7 711.888 543.096 168.792 1.868.218

8 711.888 581.112 130.775 1.287.106

9 711.888 621.790 90.097 665.315

10 711.888 665.315 46.572 (0)

7 0
3 years ago
According to Sheryl Connelly, Ford's global consumer trends manager, millennial buyers want lifestyle accessories on their vehic
Klio2033 [76]

Lifestyle can be defined through various perspectives, depending on the type of approach used to answer the question. The term itself was first conceptualized by the psychologist Alfred Adler, which defines it as “a person’s basic character as established as early in childhood”.

Marketing, however, prefers to define lifestyle as (A) an individual's pattern of living expressed through activities, interests, and opinions.

6 0
3 years ago
The ABC Co. is considering a new consumer product. They believe that the XYZ Co. may come out with a competing product. If ABC a
andrey2020 [161]

Answer:

Let X be probability XYZ offers a competing product

EMV (assembly line) = $10,000∗X+$40,000∗(1-X)

EMV (addition) = -$100,000∗X+$600,000∗(1-X)

$10,000∗X+$40,000∗(1-X) = -$100,000*X+$600,000∗(1-X)

$10,000∗X-$40,000∗X+$40,000 = -$100,000∗X-$600,000∗X$600,000

-$30,000∗X+$700,000∗X = $600,000-$40,000

$670,000∗X = $560,000

X = $560,000/$670,000

X = 0.836

ABC will be indifferent between the two alternatives if the probability that XYZ will offer a competing product is estimated to be 0.836.

ABC should invest in the addition if the probability that XYZ will offer a competing product is estimated to be less than 0.836.

7 0
3 years ago
In 2007, Gillette saw an opportunity to capture the market of 500 million Indians who used double edge razors with no protection
rusak2 [61]

Answer:

Gillette in India

The failure of the Vector was caused by the fact that Indian men have longer and thicker hair, which the lack of earlier research in the targeted demographic segment did not discover.

Explanation:

Since Indian men have longer and thicker hair than the local consumers of Gillette's razor products in America, an earlier research would have uncovered the fact.  Thereafter, the discovery would have been incorporated into the design and production of Vector for the Indian market. No wonder, with its Mach 3 Turbo razor, Gillette overcame its initial inertia and handicap and made a success of the razor business in India.

5 0
2 years ago
The price of a gallon of gasoline was $0.35 in 1972 when the CPI equaled 0.418. The price of a gallon of gasoline was $2.25 in 2
lana66690 [7]

Answer:

increased

Explanation:

Data provided in the question:

Price of a gallon of gasoline in 1972 = $0.35

CPI in 1972 = 0.418

Price of a gallon of gasoline in 2005 = $2.25

CPI in 2005 = 1.68

Now,

Real cost in 1972 = [ Nominal cost in 1972 ] ÷ [ CPI in 1972 ]

= $0.35 ÷ 0.418

= $0.837

Real cost in 2005 = [ Nominal cost in 2005 ] ÷ [ CPI in 2005 ]

= $2.25 ÷ 1.68

= $1.34

Hence,

The price of gallon of gasoline increased between 1972 and 2005

3 0
3 years ago
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