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
tatyana61 [14]
2 years ago
12

If project A generates $10 million of free cash flow over its five year useful life and project B generates $8 million of free c

ash flow over its useful life, then Project A will have a shorter payback period than Project B, assuming both projects require the same initial investment.
Business
1 answer:
fredd [130]2 years ago
8 0

Answer: False

Explanation:

This seems to me like a True or False question and the answer would be False.

Payback period is calculated on the basis of the timing of cash flows and since we do not know the useful life of Project B neither do we know the timing of it's cash flows, we cannot say for certain that Project A has a shorter Payback period.

For example, the initial investment could be $5 million for instance but Project A only pays $10 million on its 5th year whereas Project B had a useful life of 4 years and paid $2 million each of those years. Meaning it would have paid back before the end of the 3rd year.

If you need any clarification do react or comment.

You might be interested in
Toby is purchasing a $15 cake for their mother's birthday.
miss Akunina [59]
Toby should use his debit card. he should use his debit card because it’s only 15 dollars which is not an expensive amount. using his debit card would keep the payments he has to make on his credit card lower
7 0
2 years ago
Why don't snakes have spines?
Jlenok [28]

Answer:

snakes do have spines actually, in fact they need alot of bones, to be strong and flexible. They have hundreds of vertebrae and their spines are very long. You can even look up "snake skeleton"

4 0
3 years ago
With the community interested in eating healthy, Mary Catherine, a restaurant owner, is considering adding more gluten-free dish
Cerrena [4.2K]

Answer:

The correct answer is (C)

Explanation:

A decision-making process is a vital factor which can contribute towards a successful business. Likewise, some people rely on their institution and gut feeling to make a decision rather than to see the market demand and supply. This type of decision is known as a non-rational decision. Mary-Catherine is making a decision solely based on her Gut feelings which is why it is a not rational decision-making process.

7 0
3 years ago
A​ ________ pays out cash flows from a collection of assets in different​ tranches, with the highestminus−rated tranch paying ou
katovenus [111]
<span>A CDO pays out cash flows from a collection of assets in different​ tranches, with the highestminus−rated tranch paying out​ first, while lower ones paid out less if there are losses on the underlying assets.
CDO is collateralized debt obligation.It is a type of ABS (asset-backed securities). CDO's are created in tranches and tranches are number of securities offered for a same transaction.</span>
4 0
3 years ago
If the mps in an economy is 0.1, government could shift the aggregate demand curve rightward by $40 billion by question 3 option
ikadub [295]

Answer:

increasing government spending by $4 billion.

Explanation:

A rightward shift of aggregate demand means that aggregate demand is increasing.

When the government increases spending, the effect on aggregate demand is given by ⇒ total change in spending x government spending multiplier

  • total change in spending = $4 billion
  • government spending multiplier = 1 / MPS = 1 / 0.1 = 10

effect on aggregate demand = $4 billion x 10 = $40 billion

7 0
2 years ago
Other questions:
  • Arborview Plant Science Company has invented a drought resistant grass seed that only needs watering three times each year. In o
    14·1 answer
  • HELP ME PLZ i’ll give brainliest Greg owns numerous factories that prepares corn syrup for shipment. His team has packed the syr
    10·1 answer
  • Salim files a case agaisnt nina for nonpayments of dues.before the trial. nina is examined under oath in the presense of salim's
    11·1 answer
  • Giorgio Italian Market bought $11,000 worth of merchandise from Food Suppliers and signed a 45-day, 8% promissory note for the $
    6·1 answer
  • King corporation owns machinery with a book value of $760,000. It is estimated that the machinery will generate future cash flow
    14·1 answer
  • Professionalism is a skill necessary for......
    6·2 answers
  • What types of businesses are needed to make the product and deliver it to the final consumer.
    12·1 answer
  • Which action is an example of the United States using economic influence as a tool of foreign policy?​
    14·1 answer
  • In a economy, the government owns the means of production.
    10·1 answer
  • If a gain of $7,600 results from selling (for cash) office equipment having a book value of $55,100, the amount reported in the
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!