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
On August 31, Planar Corp. exchanged 100,000 shares of its $40 par value common stock for all of the net assets of Sistrock Co.
vlada-n [284]

Answer:

$7,200,000

Explanation:

Calculation to determine At what amount should Planar record the acquisition of Sistrock's net assets

Using this formula

Acquisition of Sistrock's net assets =(Shares of common stock issued ×Common stock fair value per share

Let plug in the formula

Acquisition of Sistrock's net assets=100,000*$72

Acquisition of Sistrock's net assets=$7,200,000

Therefore the amount that Planar should record the acquisition of Sistrock's net assets is $7,200,000

3 0
3 years ago
Wilma, who lives in New York, enters into a contract to buy a painting from Fred, who lives in France. The contract includes all
Shtirlitz [24]

Answer:

A court will most likely;

1. Allows the parties to rescind the contract.

Explanation:

The contract includes all the costs of insuring and shipping the painting from France to New York.

Since, the agent that made the shipping estimate makes a mistake when adding up the costs and, as a result, the shipping cost listed in the contract is $1,000 less than the actual shipping costs. A court will most likely allow the parties to rescind the contract because a part of the contract agreement has been breached in error.

7 0
3 years ago
Read 2 more answers
Distinguish between regional level and national level employment giving adequate example​
nikdorinn [45]
I don’t get it umm maybe try explaining it more
3 0
3 years ago
10. In recent years, there has been an outcry against government
jonny [76]

Answer:

Three rules I will implement is :

1. Liberalization :

Under this, I will support the domestic industry by easing the business operation and making free the activities of business around the nation.

2. Privatization :

In this, I will privatize the market and hand majority of the resources to the private entrepreneurs so that employee and efficiency could be achieved.

3. Globalization :

Under this, I will ease out the foreign trade in the country.

3 0
3 years ago
Suppose you are provided with the following data for your country for a particular month: 200 million people are working, 20 mil
IrinaVladis [17]

Answer:

60%

Explanation:

7 0
3 years ago
Other questions:
  • The Reading Co. has adopted a policy of increasing the annual dividend on its common stock at a constant rate of 3 percent annua
    9·1 answer
  • Matthew Simpson and others created and operated a series of corporate entities to defraud telecommunications companies, creditor
    7·1 answer
  • According to Lucas and​ Sargent, workers and firms have rational​ expectations, and therefore if the Fed pursues an expansionary
    12·1 answer
  • Yolanda is a cash basis taxpayer with the following transactions during the year: Cash received from sale of products $66,000 Ca
    12·1 answer
  • Consider consecutive processes A-B-C, where process A has a capacity of 20 units per hour, process B has a capacity of 25 units
    13·2 answers
  • Operating leverage predicts the effects that fixed costs have on operating income when​ ________. A. there are no sales returns
    12·1 answer
  • The Acmeville Metropolitan Bus Service currently charges $0.99 for an all-day ticket, and has an average of 588 riders a day. Th
    15·1 answer
  • Rayya company purchases a machine for $105000 on january 1, 2019. Straight-line depreciation is taken each year for four years a
    9·1 answer
  • What is the difference between paperback and mass market paperback?.
    7·1 answer
  • A firm that engages in foreign direct investment (fdi) in other countries is called a(n):_________
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!