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
shepuryov [24]
2 years ago
5

A significant flaw in the payback method of capital budgeting is that____________ Group of answer choices it ignores cash flows

following the payback period. it is calculated using arithmetic average instead of weighted moving average. it assumes future cash flows are reinvested at the IRR. it only calculates present values prior to comparing them to investment amount.
Business
1 answer:
saul85 [17]2 years ago
6 0

Answer:it ignores cash flows following the payback period

Explanation:

The payback method of budgeting does not  consider inflows of cash that occur beyond or following the payback period, thus ignoring the profitability of one project as compared to another in the sense that one project may be more valuable than another based on future cash flows.

Also, Many capital investments provide complexity of cash flows as a result of   investment returns over a period of many years, which also does not align with Payback method , because of this limitation, many businesses have adjusted by using their discretion to override this rule.

You might be interested in
The following set of main points for a persuasive speech on a question of policy follows which pattern of organization? I. A car
snow_tiger [21]

Answer: comparative advantages

Explanation:

Comparative advantages order refers to a method of organizing persuasive speeches whereby the speaker gives points on how the solution to a particular problem is preferable than other solutions that are proposed l.

It is a way of structuring a persuasive speech when the audience knows that there's a challenge regarding a particular thing but wants to be convinced that a particular plan is the best solution when compared to other plans.

In this case, since the speaker is trying to tell the audience that carbon tax is a better solution than an emission trading system to the problem of industrial pollution, then this is referred to as comparative advantage order.

8 0
2 years ago
Brief Exercise 22-07 Sunland Company classifies its selling and administrative expense budget into variable and fixed components
prohojiy [21]

Answer:

So whats the question???

Explanation:

7 0
3 years ago
Which of the following types of economies is most likely to develop new and better products?
Zinaida [17]
Market because it promotes competition which in return lowers prices and increases quality
6 0
3 years ago
Henrietta transfers cash of $75,000 and equipment with a fair market value of $25,000 (basis to her as a sole proprietor, $10,00
katovenus [111]

Answer

The answer and procedures of the exercise are attached in a image below****

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

3 0
2 years ago
A firm is considering purchasing two assets. Asset L will have a useful life of 15 years and cost $4 million; it will have insta
schepotkina [342]

Answer:

Asset S has $103333 more depreciation expense per year than asset L

Option D is the correct answer.

Explanation:

The straight line depreciation method charges a constant depreciation expense per period throughout the estimated life of the asset. The depreciation expense per year is calculated as follows,

Depreciation expense per period = (Cost - Salvage value) / Estimated useful life of the asset

We first need to calculate the cost of each asset. The cost that is recognized should include all costs incurred to bring the asset to the place and condition of use as intended by the management.

Cost - Asset L = 4000000 + 750000   =  4750000 or 4.75 million

Cost - Asset S = 2000000 + 500000  =  2500000 or 2.5 million

<u>Depreciation expense per year </u>

Asset L = (4750000 - 0) / 15

Asset L = $316,666.67

Asset S = $420000

Difference = 420000 - 316666.67

Difference = $103333.33

Asset S has $103333 more depreciation expense per year than asset L

4 0
2 years ago
Other questions:
  • Pierce Company incurred $150,000 of research and development costs in its laboratory to develop a new product. It spent $20,000
    7·1 answer
  • Jamie’s Bakery, a small chain of eight bakeries in Altamonte Springs, Florida has recorded sales growth of 30 percent or more pe
    6·1 answer
  • Having fewer customers in business markets in comparison with consumer markets:
    12·1 answer
  • During the current month, Sheffield Company incurs the following manufacturing costs. (a) Purchased raw materials of $17,800 on
    14·1 answer
  • Suppose you buy clothes at Mimi's Clothing Shop. Your spending is Mimi's _____.
    5·1 answer
  • A company has two products: A1 and B2. It uses activity-based costing and has prepared the following analysis showing budgeted c
    15·1 answer
  • Assume you have a brand new baby today. You plan to make 18 $1,000 annual deposits in her college savings account, starting on h
    12·1 answer
  • Select the correct answer.<br> A teacher is an example of a social type.<br> A. True<br> B. False
    7·1 answer
  • ____?____ brands are a form of private, no-frills goods stocked by some retailers that usually get secondary shelf locations, ha
    8·1 answer
  • g This year, Nilo Inc. granted nonqualified stock options to 230 employees. For financial statement purposes, Nilo recorded a $1
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!