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fredd [130]
3 years ago
11

Which one of these statements related to discounted payback is correct?a) the discounted payback period decreases as teh discoun

t rate increasesb) discounted payback is biased towards long-term projectsc) discounted payback is used more frequently in business than paybackd) discounted payback does not require a cutoff pointe) payback is a better method of analysis than discounted payback
Business
1 answer:
Free_Kalibri [48]3 years ago
5 0

Answer:

A) the discounted payback period decreases as the discount rate increases

Explanation:

The discounted payback period is used to determine the profitability of an investment project.

A not discounted payback period is how long does it take for the cash flows of a project to recoup the investment's cost without considering the value of money in time. By applying a discount to the cash flows, the discounted period will more accurately measure the length of time needed to recoup an investment using current dollars.

The higher the discount rate, the longer it will take for the cash flows to cover the investment's cost, so if the discount rate lowers, then the discounted payback period will be shorter.

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ABC Corporation uses the weighted-average method in its process costing system.
Troyanec [42]

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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7 0
2 years ago
Why only 4 percent manage to succeed in business of company ??​
dolphi86 [110]

Answer:

A lot of businesses don't succeed due to money problems, or no customers.

Explanation:

7 0
2 years ago
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Which is not a factor that can cause a change in supply?
sasho [114]

Answer:

business model is not a factor

Explanation:

4 0
2 years ago
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Suppose that a new high school opens next to a popular fast food restaurant. Explain what will happen to the derived demand for
Tanya [424]

Answer:

the derived demands would most likely be increased.

Explanation:

When the new high school opened next to the fast food resturant i.e. popular so here it increased the consumers for that restaurant also the majority of the consumers would be the students only as it near by the school. Also the price should be cheap so that it can be easily afforded by the students

Therefore the derived demand should be likely to rise

3 0
2 years ago
A 3-year project is expected to produce a cash flow of $82,400 in the first year and $148,600 in the second year. The project ha
givi [52]

Answer:

$163,100

Explanation:

First find the present value of cashflows at year 1 and 2

<u>PV of  $82,400;</u>

PV = FV/(1+r)^n

PV = 82,400/(1.1275)^1

PV = $73082.0399

<u>PV of  $148,600;</u>

PV = FV/(1+r)^n

PV = 148,600 /(1.1275)^2

PV = $116,892.2473

From the cumulative present value of 303,764.34, find the balance after deducting the above PVs;

PV of cashflow yr3 = $303,764.34 -$73082.0399 -$116,892.2473

PV of cashflow yr3 = $113,790.053

Next, calculate year 3's cashflow;

Year 3 cashflow = 113790.053(1.1275)^3

Year 3 cashflow = $163,099.996

Expected cashflow in third year is approximately $163,100

3 0
3 years ago
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