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attashe74 [19]
3 years ago
13

The payback method is often more useful than the net present value method for evaluating systems projects because the effective

lives of information system tend to be short and shorter payback projects are often desirable.
True/False
Business
2 answers:
Kryger [21]3 years ago
8 0

Answer:

True

Explanation:

The payback method of evaluating capital expenditure projects is very popular because it's easy to calculate and understand. It has severe limitations, however, and ignores many important factors that should be considered when evaluating the economic feasibility of projects.

In finance, the net present value or net present worth applies to a series of cash flows occurring at different times. The present value of a cash flow depends on the interval of time between now and the cash flow. It also depends on the discount rate. NPV accounts for the time value of money.

Payback method considers the time that a project takes to payback the capital invested in it from its net cash flows.

The payback method is often more useful than the net present value method for evaluating systems projects because the effective lives of information system tend to be short and shorter payback projects are often desirable.

attashe74 [19]3 years ago
3 0

Answer:

True

Explanation:

Payback method considers the time that a project takes to payback the capital invested in it from its net cash flows.

Projects that have a short payback period are preferred by investors because the capital invested takes a shorter time to be repaid. That is shorter risk period.

Net present value is a consideration of the expected future cash flows in a project. It is the difference between the net present value of an asset and the present value of cash flows over a certain period. It's calculation is based on a lot of assumptions so it is probe to error.

Payback method is preferred because the effective lives of information system tend to be short and shorter payback projects are often desirable.

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If it is true that whenever a manager encounters a particular situation (such as motivating employees to work harder), and a sin
Artyom0805 [142]

Answer:

b. The human relations perspective

Explanation:

The human relations perspective, identifies the manager as one who is supportive to subordinate, such that he or she motivates employees' to work harder. <em>The human relations perspective do not believe in managers oppressing subordinates.</em>

4 0
3 years ago
Describe two disadvantages of early forms of money, and explain how they could have been fixed.
Katen [24]

Answer:

The early system of money was the barter exchange system where the commodities were exchanged for other's commodities. The major disadvantages were:

  1. Lack of Double Coincidence of Wants:

It is fundamental for an individual who wishes to exchange his good/service to locate some other individual who isn't just eager to purchase his good/service, yet in addition has that good which the former needs.  This could be fixed if seller finds a buyer who has the same good that is needed so both exchange goods that the other needs.

    2. Lack of a Common Measure of Value:

Regardless of whether the two people who need each other's merchandise meet unintentionally, the issue emerges with regards to the extent in which the two products ought to be traded. There being no basic proportion of significant worth, the rate of trade will be discretionary fixed by the power of interest for one another's merchandise. This could be fixed if both parties decide the goods they wish to trade.

8 0
3 years ago
A member of the park service believes the average number of cacti per square km in tucson, az in the year 2001 is less than the
tia_tia [17]

Question Continuation

a. What is a subject in this study?

b. What is the explanatory variable and what type of variable is it?

c. Which type of test is most appropriate?

Answer:

See Explanation Below

Explanation:

a.

In research, a subject can be referred to as a person, place, thing, or phenomenon that is being measured of observed. In the question above, the observation is focused on the area of cacti/km² plot of land near Tucson, AZ; hence, it'll be taken as the research subject.

b. Explanatory variables are those variables that are not totally independent and are used to predict or explain differences in the response variable.

Having pointed what an explanatory variable is, we'll list the explanatory variable(s) in the question, using the definition above.

1. Year;

The question compares the growth of cacti per km² in 1970 and 2001. The differences in the growth are then measured in order to determine if there's indeed a growth or a decline in growth of cacti.

Hence, year is an explanatory variable and it's numerical

2. Using the same yardstick, another explanatory variable in the question above is the average number of cacti per km².

It is considered an explanatory variable because it represent the numerical value of cacti present in a km² area.

It is also numerical

c.

The most appropriate type of test in this kind of observation is the independent sample t test.

An Independent Samples t Test takes into consideration the means or averages of two independent groups and then make makes comparison between them in order to determine whether there is statistical evidence that the associated population means are significantly different.

The question compares the average of cactus in 1970 and 2001.

The keyword here is average and that is what is being described by the independent sample t test. I.e. the average of cactus per km² in both years.

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ser-zykov [4K]
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