Finance

The initial outlay or cost for a four-year project is $1,000,000. The

The initial outlay or cost for a four-year project is $1,000,000. The respective cash inflows for years 1, 2, 3 and 4 are: $500,000, $300,000, $300,000 and $300,000. What is the discounted payback period if the discount rate is 10%? A) About 2.67 years B) About 3.35 years C) About 3.67 years D) About 4.50 […]

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Date: September 19th, 2020

Which of the statements below is TRUE of the payback period method? A

Which of the statements below is TRUE of the payback period method? A) It ignores the cash flow after the initial outflow has been recovered. B) It is biased against projects with early-term payouts. C) It incorporates time-value-of-money principles. D) It focuses on cash flows after the initial outflow has been recovered.     ANSWER […]

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Date: September 19th, 2020

Throughout the period 1980-2000, the composite proportion of the TA of

Throughout the period 1980-2000, the composite proportion of the TA of U.S. nonfinancial firms accounted for by net PP&E generally (i)_, and the proportion of TA financed by equity (ii) fairly steadily. (i) (ii) a. decreased increased b. increased decreased c. increased also increased d. decreased also decreased     ANSWER B

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Date: September 19th, 2020

Consider the following four-year project. The initial outlay or cost i

Consider the following four-year project. The initial outlay or cost is $180,000. The respective cash inflows for years 1, 2, 3 and 4 are: $100,000, $80,000, $80,000 and $20,000. What is the discounted payback period if the discount rate is 11%? A) About 1.667 years B) About 2.000 years C) About 2.135 years D) About […]

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Date: September 19th, 2020

Acme, Inc. is considering a four-year project that has initial outlay

Acme, Inc. is considering a four-year project that has initial outlay or cost of $100,000. The respective cash inflows for years 1, 2, 3 and 4 are: $50,000, $40,000, $30,000 and $20,000. Acme uses the discounted payback period method, and has a discount rate of 11.50%. Will Acme accept the project if it’s payback period […]

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Date: September 19th, 2020

There are a number of key management attributes that are required to i

There are a number of key management attributes that are required to improve a firm’s chances of business success which include: A) managers with expertise and technical knowledge in the functional areas. B) middle managers with leadership potential. C) managers with experience in the industry in which the firm operates. D) All of the above. […]

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Date: September 19th, 2020