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ladessa [460]
3 years ago
9

A disadvantage of using the payback period to compare investment alternatives is that:

Business
1 answer:
Murljashka [212]3 years ago
3 0

Answer: Option a

                             

Explanation: Payback period in capital budgeting comes from a time needed to recover or exceed the break-even point of the funds spent on a project. Moreover, the payback period does not take into account the time value of money.

It is based on the number of years it would take for the funds spent to be recovered. Thus, payback period only evaluates a project on the basis of time period it takes to recover back the investment this results in ignorance of cash flows, which might be huge in amount, that results after the pay back period.

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3 years ago
The following data are for the Akron Division of Consolidated Rubber, Inc.: Sales $ 800,000 Net operating income $ 50,000 Averag
ELEN [110]

Answer:

ROI 87.5%

Explanation:

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Total return

50,000 perating income + 20,000 residual income = 70,000 income

The asset could been adquire on lease or through liabilities, this is not investment. The investmetn made is the one done by the shareholders.

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3 years ago
Forrester Company is considering buying new equipment that would increase monthly fixed costs from $276,000 to $544,500 and woul
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Answer:

The correct answer is E.

Explanation:

Giving the following information:

Forrester Company is considering buying new equipment that would increase monthly fixed costs from $276,000 to $544,500 and would decrease the current variable costs of $60 by $15 per unit. The selling price of $100 is not expected to change.

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6 0
3 years ago
Read 2 more answers
Items such as cookies, crackers, and potato chips have separate schemas. However, these can be clustered into one category becau
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Answer:

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Explanation:

Taxonomy can be defined as the system of classification of various things based on their similarities or differences.

In the question above, cookies, crackers and potato chips are different products, but they all share a similarity, which is that they're all snack foods and therefore are under the same taxonomic category.

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2 years ago
Which of the following is the most appropriate topic to address in a college application essay?
Aleksandr [31]

Answer:

C

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because I feel that many individuals would select the most basic option, such as A or B.

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