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lbvjy [14]
3 years ago
12

a. Describe how the payback period is calculated and describe the information this measure provides about a sequence of cash flo

ws. What is the payback criterion decision rule?
Business
1 answer:
saw5 [17]3 years ago
7 0

Answer:

While taking a capital budgeting decision of source of fund, or the capital project to be chosen, we sometimes use Payback Period

It is defined as the tenure in which the cash flows will realize the cost of project, that is the period in which the entire cost will be paid back.

This provides the information regarding the time after which the project will be profitable, or the time at which it will reach break even.

The payback uses the criteria that if the payback period calculated is less than life of project it shall be accepted, in case it is equal to life of project then  there will be no profit no loss, and in case payback is higher than life of project then there will be loss.  

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Which of these banking services allows your paycheck to be transmitted electronically to your bank?
DiKsa [7]
The banking that allows that can be chase.
4 0
3 years ago
Adams and Collin Enterprises expect earnings and dividends to grow at a rate of 25% for the next 4 years, after the growth rate
ollegr [7]

Answer:

the intrinsic value of the stock is 42.97

If the stock is priced at 40 dollars it would be a good idea to purchase the share as will provide a better yield than the cost of capital of 9.6%

Explanation:

First, we solve for the cost of equity using the CAPM:

Ke= r_f + \beta (r_m-r_f)

risk free = 0.03

market rate = 0.09

premium market = (market rate - risk free) = 0.055

beta(non diversifiable risk) = 1.2

Ke= 0.03 + 1.2 (0.055)

Ke = 0.09600

<em>Now we solve for the intrinsic price using the gordon model</em>

<em>with multi-stage growth:</em>

First, we calcualte the future dividends

grow rate Dividends

0                1.25

1 0.25       1.5625

2 0.25       1.953125

3 0.25       2.44140625

4 0.25       3.051757813

4 0.03     3.143310547

Now in the last year, we calcualte using the gordon model or constant grow:

\frac{3.143310547}{0.096-0.03} = Intrinsic \: Value

32.7128182

Now we calculate and add together the present value of each of this future cash flow to determnate the intrinsic  value ofthe share:

\frac{Principal}{(1 + rate)^{time} } = PV

Present Value

1 1.5625 / (1+0.096)^1     =  1.425638686

2 1.953125 / (1+0.096)^2 = 1.625956531

and so on, giving the following values:

3 1.854421226

4 2.114987712

present value of the future dividends at 3% 22.67126448

<u>Finally we add them and get:</u>

42.97160726

8 0
3 years ago
Help please!
Kitty [74]

Answer: Gemma took a <em>values inventory </em>in her career explorations class. This indicated to Gemma that money and status may mean a lot to her, but she also finds it healthy to maintain a work-life balance. The correct answer is B.

Explanation:

A values inventory is commonly given in school to help a student with their career goals. They are usually given a personality inventory, an aptitude assessment, and an interest inventory.

The values inventory worksheet has two separate sets of questions about life values and work values. On this worksheet, the student must choose from the columns of "must have, would like, and least important."

A few of the life values a student has to choose from are listed below.

1.) Being Healthy as can be.

2.) Having a happy family life

3.) Having a high status and prestige

4.) Having material possessions in life.

A few of the work values a student has to choose from are listed below.

1.) Being a leader at work.

2.) Working as a team member.

3.) Having experiences that are creative.

4.) Having job security.

8 0
3 years ago
According to behavioral​ economics, consumers A. always behave rationally because they take into account monetary costs and nonm
FromTheMoon [43]

Answer:

E. do not always behave rationally because they are overly optimistic about their future behavior.

Explanation:

Behavioral economics is the study of irrational economic decisions from people's behavior.

Behavioral economics includes the people's emotional framework to make choices beyond the rational choice theory, which states that a rational person is not moved by emotions and social factors to choose the option that maximizes their satisfaction.

To be overly optimistic about your future behavior is biased from social factors and it is a behavior that could be understood from the human emotional framework.

7 0
3 years ago
Read 2 more answers
The workers are openly hostile to Scott when he enters the meeting. Which barrier to communication does the workers’ actions rep
Kruka [31]

Answer:

(e) defensiveness

Explanation:

The best option amongst all is defensiveness.

The workers action could also be understood as defensiveness. Hostility or having an unfriendly attitude is a major barrier in communication especially in organizations.

The workers were not open minded and lacked respect to listen to what Scott would have said at the meeting.

Other barriers to communication includes, Emotions, Cultural Barriers etc.

5 0
3 years ago
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