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:
$9,400
Explanation:
The computation of deductible expenses is shown below:-
Airfare = $400
Lodging = $300 × 5
= $1,500
Meals = $150 × 5
= $7,500
Total deduction = Airfare + Lodging + Meals
= $400 + $1,500 + $7,500
= $9,400
Therefore for computing the total deduction we simply add airfare, lodging and meals and hence the total deduction is $9,400
Which of the following would normally involve long-term financing?
Purchase of modern equipment;
Long-term financing is used for major purchases that are financed for a time period greater than one year such as new product development, building or purchasing new facilities, and replacing capital equipment.
Answer: This can be explained as follows:-
Explanation: MCdonalds change in menus and adding more healthy choices does brings change in the traditional value chain of the company.
In traditional times company was mainly focused towards the taste of the product and to make the service as fast and as efficient as possible but now the company is taking care of the health of its customers. Company wants to attract new customer base of health conscious people. In traditional times company's aim was to make quick service to get the tables ready every time a customer walks in but today company wants to make the restaurant a place where people can sit and enjoy their meal for a while and company is taking help of technology in this.
Answer:
The selling group member earns $12 on that sale
Explanation:
When selling a bond directly to the public, a group member earns a total takedown which is the total of the additional takedown plus the selling concession.
$12 + $15
= $27
Now if a selling group member finds a customer, then $15 which is the selling concession is given up leaving the member to earn $12 (the additional takedown) on that sale.
