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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Answer:
B, A profit
Explanation:
Since HIdeki is giving out the trees to Ekaterina for free, it means that Ekaterina has a lot of profit already because he/she got the trees as a gift and did not need to purchase them thus saving him/her a lot of capital.
The money Ekaterina must have had in mind to purchase raw materials(trees) for the businees before being giftef 250 tress can go into another investment or expansion of the carving business.
Cheers.
<span>The probability of incurring bankruptcy increases as a firm's debt/equity ratio decreases.
FALSE</span>
Answer:
The correct answer is E
Explanation:
Cognitive dissonance is the situation or circumstance which occur or happen when a person or an individual holds two or more ideas, values or beliefs which are contradictory or participates in action which might go against one of the three elements.
So, in this case, the sales person, who made a sales through selling a car to customer, tries to reinforce the fact by asking after 2 weeks, that they made a smart investment. Therefore, he is trying to reduce or decrease the cognitive dissonance.
Answer:
C. Ethical Standards
Explanation:
The ethical standards establish the parameters of behavior that owners and top executives expect from employees and also from suppliers, at least to the extent of their relationship with the organization.
