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2 years ago

What is a disadvantage of the payback method?

1 answer:

5 0

The statement " It eliminates the inflows of cash earned following the payback period and time value of money" is the disadvantage of the payback method

The payback period is the period thats tells the time period in which the initial investment that was made should be recovered.

It is to be measured in years normally.

For finding the disadvantage, we need to find out the following information related payback period

It is easy to calculate
The cash flows earned after the payback period should not be used
There is no requirement to determine the present value factor for measuring the payback period.
Also, it does not use for distinct cheap projects from lower ones

So this is the reason this method ignored the times value of money

Therefore, we can conclude that, the correct option is b.

Learn more about the payback method here: brainly.com/question/16255939

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In 2009, the imaginary nation of Viloxia had a population of 5,000 and real GDP of 500,000. In 2010 it had a population of 5,100

Rashid [163]

The correct answer is A. During 2009 real GDP in Viloxia grew by 2 percent, which is about the same as average U.S. growth over the last one-hundred years.

Given that in 2009, the imaginary nation of Viloxia had a population of 5,000 and real GDP of 500,000, and in 2010 it had a population of 5,100 and real GDP of 520,200, to determine the growth of real GDP in Viloxia during 2009, the the following calculations must be made:

Total GDP / population = real GDP
500,000 / 5000 = X
100 = X
520,200 / 5100 = X
102 = X
102 - 100 = 2

Therefore, during 2009 Viloxia's GDP grew by 2 percent, which is about the same as average U.S. growth over the last one-hundred years.

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2 years ago

Mays, Inc. had net income for 2014 of $1,060,000 and earnings per share on common stock of $5. Included in the net income was $1

Rainbow [258]

Answer:

The dividends on common stock in 2014 for Mays, Inc was:

Dividends paid=$2650

Explanation:

1. You must follow the formula below to find out the Dividends Paid by Mays inc,

Payout ratio = (dividends paid/net earnings for the period) x 100 then,

Dividends paid= (Payout Ratio/100) x net earnings for the period

Dividends paid= (25%/100)x$ 1'060.000

Dividends paid=$2650

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2 years ago

Which of the following is an INCORRECT statement regarding the right to stop delivery of goods in transit? A. If the lessee rep

Verizon [17]

Answer:

B. The lessor does not have the right to stop delivery in transit due to the lessee's breach of the lease agreement; instead, the lessor must deliver the goods to the lessee in spite of the breach, and then sue the lessee for damages.

Explanation:

During the transit of goods, if the lessor learns of a breach of the lease agreement, he has every right to stop the delivery of the goods in transit by notifying the goods carrier or bailee. Since the carrier of the goods reports directly to the lessor, once he receives instructions from the lessor to stop delivery of goods, and he still has sufficient time, the delivery should be stopped.

Once the goods are reclaimed, the lessor can then decide to sue to recover damages. He can also, decide to cancel the contract at that point

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2 years ago

Smart businesses in all industries use data to provide an intuitive analysis of how they can get a competitive advantage.

svetlana [45]

Answer:

true might be false sorry i dont know

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2 years ago

Last year Thomson Inc's earnings per share were $3.50, and its growth rate during the prior 5 years was 11.0% per year. If that

Semmy [17]

Answer:

10.52 years

Explanation:

We can work out the number of years using this relationship

V =P× (1+r)^n

V= tribe valeu = 3×3.5 = 10.5

r-growth rate -11%

n- number of years- ?

10.5 = 3.5× (1.11)^n

dividing both sides by 1.11^n

1.11^n = 10.5/3.5

taking the log of both sides

n log 1.11 = log 3

n = log 3/log 1.11

n =10.52

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2 years ago