0
Want this question answered?
Be notified when an answer is posted
Still curious? Ask our experts.
Chat with our AI personalities
Jordan
Judy
FranAdd your answer:
Earn +20 pts
Limitatios of payback period?
- the payback period is to dependent on cash inflows which are hard to predict. - The payback period only considers revenue, does not consider profits.
When is a decision rule for a payback period is?
Payback period is the number of years required to recover the cost of project or initial cash out flows. Say a project requires an initial investment of $10,000 and you can expect cash inflows at the end of each of the next four years in amounts of $5,000 $4,000 $3,000 and $1,000 N---- CF ----------- Cumulative Cash Flow 0---- -10,000(p) 1---- 5,000 -------- 5,000 2q-- 4,000 -------- 9,000 r 3---- 3,000s ------ 12,000 4---- 1,000 -------- 13,000 As we notice that year before recovery is 2. And to get the remaining months out of Year 3, we do the following calculations (10,000 - 9,000)/3000 1,000/3,000 0.333 years 0.333 x 12 months 4 months Thus regular payback period is 2 years and 4 months.
What is 3 ft squared?
3FT [] or [3]ft or 333333333 3 3 3 3 3 feet 3 3 3 333333333
Calculate 3 3 3 equals 6?
(3 x 3( - 3 = 9- 3 = 6
What is 3 plus 3 plus 3 3 plus 3 plus 3?
3 plus 3 plus 3 is 9. 3 plus 3 plus 3 plus 3 plus 3 plus 3 is 18.
