If a payback period for a project is greater

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WebIf the payback period of an investment project is shorter than its life, the project's profitability index is greater than 1. F 3. If a company has decided that a certain task … WebIf a payback period for a project is greater than its expected useful life, the a. project will always be profitable. b. entire initial investment will not be recovered. c. project would …

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WebIf a payback period for a project is greater than its expected useful life, the a. project will always be profitable. b. entire initial investment will not be recovered. c. project would only be acceptable if the company's cost of capital was low. d. project's return will always exceed the company's cost of capital. b. Web27 apr. 2024 · Explanation: The Payback period by definition is the amount of time it will take a Project to recover the initial investment into it. For example, if a project had an … nursing biography examples

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WebThe discounted payback rule states that you should accept projects: A. That have a discounted payback period that is greater than some pre-specified period of time. B. If the discounted payback is positive and rejected if it is negative. C. Only if the discounted payback period equals some pre-specified period of time. D. Web11 sep. 2015 · The results showed that alternative 2 gave the largest reduction of CO 2 for the calculation period, although it had a longer environmental payback period than alternative 3. Alternative 3 and 4 were relatively equal in terms of CO 2 emissions, but adding more insulation (alternative 4) resulted in a longer payback period as compared … Web12 apr. 2024 · A positive NPV, higher IRR, shorter payback period, and PI greater than or equal to one all indicate that a project should be accepted as it adds value to the business. nittany apples history

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Web1 dag geleden · In that case, the project will be financially feasible since the equity payback period will be less than the threshold value. For the risk analysis, more parameters … WebThe discounted payback period of a project will decrease whenever the: amount of each project cash flow is increased The average accounting rate of return: is similar to the return on assets ratio Assuming that straight line depreciation is used, the average accounting return for a project is computed as the average: nittaku acoustic weightWebIf a payback period for a project is greater than its expected useful life, the A. project will always be profitable. B. entire initial investment will not be recovered. C. project would … nursing bioinformatics

"WebFor discount rates greater thanzero, the payback period will still be less than the project’s life, but theNPV may be positive, zero, or negative, depending on whether the discount rateis less than, equal to, or greater than the IRR. The discounted paybackincludes the effect of the relevant discount rate. " - If a payback period for a project is greater

If a payback period for a project is greater

Web12 apr. 2024 · A PI greater than one means that your project or investment is profitable and creates value. A PI less than one means that your project or investment is unprofitable and destroys value. You... WebA high ROI means the investment's gains are greater than its cost. A payback period, on the other hand, is the time it takes to recover the cost of an investment. So, if an …

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WebIf a project's internal rate of return is greater than the project's required return, then the project's profitability index will be greater than one. True An acceptable project should … Web16 dec. 2024 · Payback period is one of the methods used in capital budgeting. Payback period calculates how long it takes for the amount invested in a project to be recovered …

WebIf the payback period for a project is greater than its expected useful life: a. the project will always be profitable. b. the entire initial investment will not be recovered. c. the project's... Web29 nov. 2024 · The payback-period method calculates how long it will take to earn back the project's initial investment. Although it doesn't consider profits that come in once the initial costs are paid back, the decision process might not need this component of the analysis.

Web29 mrt. 2024 · Payback Period = Investment/Annual Net Cash Flow (the answer is expressed in years) The above equation only works when the expected annual cash flow from the investment is the same from year to year. If the company expects an “uneven cash flow”, then that has to be taken into account. Web5 apr. 2024 · With the payback period method, a project that can pay back its launch costs within a set time period is a good investment. Key Takeaways Net present valued (NPV) is used to calculate the current value of ampere future pour of payments from a company, project, or investment.

WebPayback period Maturity period Answer: c Which of the following can be a criterion for the acceptance of a project? The Profitability Index should be greater than unity The Internal Rate of Return should be greater than the cost of capital The Net Present Value should be greater than zero All of the above Answer: d

WebExpert Answer Answer: 1. if a payback period for a project is g … View the full answer Transcribed image text: If the payback period for a project is greater than its economic … nursing birmingham city universityWeb4 dec. 2024 · We can compute the payback period by computing the cumulative net cash flow as follows: Payback period = 3 + (15,000 * /40,000) = 3 + 0.375 = 3.375 Years * Unrecovered investment at start of … nursing blended learningWeb31 mei 2024 · In contrast, the IRR rule states that if the internal rate of return on a project is greater than the minimum required rate of return or the cost of capital, then the project or investment... nursing bioethics degreeWebO the payback period is greater than the acceptable payback period 0 the internal rate of return is less than the required return 0 the net present value is negative 0 the internal rate of return is greater than the required return Show transcribed image text Expert Answer 100% (9 ratings) nittan company limitedhttp://breesefine6020.tulane.edu/wp-content/uploads/sites/109/2024/02/Chapter-05.pdf nittaku fastarc c1 / g1 / p1 / s1 桌球膠皮WebIf a project’s discounted payback period is less than the project’s life, it must be the case that NPV is positive. 2. Assuming conventional cash flows, if a project has a positive NPV for a certain discount rate, then it will also have a positive NPV for a zero discount rate; thus, the payback period must be less than the project life. nursing blister on nippleWebThe decision rule for this capital budgeting method states a project should be considered acceptable if its calculated return is greater than or equal to the firm's required rate of … nursing bird back to health