1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Brittany has the right when her child is born to take one full year of leave with two-thirds of her pay, and there is substantia
Mrrafil [7]
It is likely that Brittany lives in SWEDEN, DENMARK OR NORWAY. These three countries have generous offers for pregnant women and new parents. Their system is generally flexible and new moms can decide to go for long periods with shorter pay or shorter periods with full pay depending on individual choice and their family circumstances.
3 0
3 years ago
Kirov, Inc. reports credit sales of $200,000 for the year ending December 31. The year-end unadjusted balance of its Allowance f
zubka84 [21]

Answer:

The correct answer is: $12,000

Explanation:

uncollectible debt = 6% of net sales

= 6/100 × 200,000

= 0.06 × 200,000 = $12,000

Therefore, $12,000 will be removed (debited) from the bad debt expense because it is uncollectible, and it is added (credited) to the Allowance for Doubtful accounts as bad debt to be paid for in the bad debt reserve account.

7 0
3 years ago
When perfectly competitive firm X sells three units of product Z, its marginal revenue is $4.67. When it sells one hundred units
Sedaia [141]

Answer:

<u>A) $4.67</u>

Explanation:

In a perfectly competitive market, marginal revenue always is equal to price.  Also, the price is not determined by the firms, it is given by the market because producers doesn´t have any power of decision in this matter.

Due to that, the price is constant, independent the quantity sold.

8 0
3 years ago
Traditionally, the music industry signed multi-year contracts with artists and sold copyright-protected music through establishe
Anna [14]

Answer:

d) standard; fast

Explanation:

Standard cycle market is defined as a market where a company's products (competitive advantage) are shielded from imitation. This is seen in the given scenario as multi-year contracts with artists and sold copyright-protected music through established distribution channels.

Fast cycle market on the other hand occurs when the competitive advantage of a company is not shielded from imitation. The imitation occurs regularly. In the given scenario this is exemplified by a shift to the digital format and the rise of Internet technology have resulted in the sharing of music over peer-to-peer networks, a practice the industry calls "piracy

5 0
3 years ago
When contemplating a product deletion, a firm studies customer migration patterns to determine: the profit contribution of the p
pentagon [3]

Answer: whether customers of the product would switch to other substitute products marketed by the same firm.

Explanation:

Customers regular move from one good to another or from one good to it's substitutes in a process called Customer Migration.

There are various reasons for this such as affordability, change in technology, trends and the like.

When a company contemplates ending a product line and decides to study customer migration patterns, they are checking to see what the customer will switch to when the product is deleted. If they make substitutes to the product to be deleted, they will be checking to see if the customers will switch to these substitutes if the product line is ended.

4 0
3 years ago
Other questions:
  • The Titan retires a $24.6 million bond issue when the carrying value of the bonds is $21.4 million, but the market value of the
    5·1 answer
  • Urban Window Company had gross wages of $309,000 during the week ended July 15. The amount of wages subject to social security t
    11·1 answer
  • Compute the impact on the money multiplier of an increase in the currency-to-deposit ratio from 10 percent to 15 percent when th
    6·1 answer
  • The beginning checkbook balance of Gregory Co. was $3,045.58. Their bank statement indicated a balance of $4,262.92. The bookkee
    12·2 answers
  • Consider the following information: State of Economy Probability of State of Economy Portfolio Return If State Occurs Recession
    11·1 answer
  • You have an outstanding balance on your credit card of $10,000. You can pay off the balance if you make 36 monthly payments of $
    13·1 answer
  • Safefen, a safety assurance and standards association in the country of Eilenst, made it mandatory for all the toy manufacturers
    7·1 answer
  • The measure of a​ company's ability to collect cash from its customers who purchase on account is the A. accounts payable turnov
    6·1 answer
  • Highlight clues that reveal the point of view of the narrative.
    6·2 answers
  • If a firm decides to increase the depth of its offerings to address consumer preferences, what will it do
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!