The payback period method has been criticised for not taking the time value of money into account.

Question:

The payback period method has been criticised for not taking the time value of money into account. Could this limitation be overcome? If so, would this method then be preferable to the NPV method? R-2

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Management Accounting For Decision Makers

ISBN: 9781292204574

9th Edition

Authors: Peter Atrill

See More Books

Question Posted: Jun 07, 2024 01:10 AM

See More Questions

The Supreme Court's 1971 decision in Willie S. Griggs v. Duke Power Company is often cited as a landmark. Briefly explain what this case was about and then indicate 1. what the Court's decision was, 2
The Supreme Court's 1971 decision in Willie S. Griggs v. Duke Power Company is often cited as a landmark. Briefly explain what this case was about and then indicate 1. what the Court's decision was, 2
Find a parametrization (É¸, E) of the ellipsoid which is smooth off the topological boundary ÏE. r 2 2 2 2
5t-6, x <2 2x4 find f '(x) and give its domain. 2x+8, x>4 Given f(x)=x
Preparing a balance sheet and calculating profit Sergio and Samdecided to form a partnership on 1 January 2013. They secured the services of a solicitor to draw up their partnership agreement as...
Write a piece of code that uses stream operations to count the number of even integers in a stream. For example, if the stream contains {18, 1, 6, 8, 9, 2}, there are 4 even integers.
Demonstrate the worksheet procedures needed to eliminate the investment account. AppendixLO1
The assets of Fonzarelli Corporation are presented on the next page (000s omitted).InstructionsIndicate the deficiencies, if any, in the foregoing presentation of Fonzarelli Corporation??sassets....
Part 1 is correct, I just need help with part 2 Required information Exercise 9-8A Record bonds issued at a discount and related semiannual interest (LO9-5) [The following information applies to the...
Focusing on Cash Flows: Matching Cash Flow Items to Categories LO1-1 Cheez. Inc. produces, markets, and distributes a wide variety of products to customers in many countries. Its products include...
Analyzing and Interpreting a Statement of Earnings LO1-1 Pest Away Corporation was organized by three individuals on January 1, 2020 to provide insect extermination services. At the end of 2020, the...
For the above Brayton cycle, determine the ideal thermal efficiency. a. 49.6%, b. 60.1% c. 42.2% d. 35.4%. Brayton cycle Consider a gas-turbine engine operating with 20 kg/s of air entering at 300 K...
A production Edgeworth Box, with origins indicated for the inputs of capital, K , and labor, L , into production of goods X and Y .Eight isoquants are shown, reflecting standard...
For 2014, Nichols, Inc., had sales of 150,000 units and production of 200,000 units. Other information for the year included: Direct manufacturing labor 187,500 Variable manufacturing overhead...
reading the following statement and decide whether you agree or disagree with the statement: "The free market system is the best economic system since it is the most efficient and solves basic...
find the net presbf value of the project ? present value index? Net present value A project has estimated annual net cash flows of $11,250 for 10 years and is estimated to cost $42,500. Assume a...
Calculate the ICER for the new treatment, without adjusting for the health utility index. Assuming the $50K benchmark*, as a clinical decision maker or health policy advisor, would you recommend...
Sandblasting equipment acquired at a cost of $36,000 has an estimated residual value of $6,000 and an estimated useful life of 10 years. It was placed into service on April 1 of the current fiscal...
Consider the combustion of methanol below. If 64 grams of methanol reacts with 160 grams of oxygen, what is the CHANGE in volume at STP. 2CH3OH(g) + 3O2(g) 2CO2(g) + 4H2O(1) The volume decreases by...
You buy a stock for $35 per share. One year later you receive a dividend of $3.50 per share and sell the stock for $30 per share. What is your total rate of return on this investment? What is your...
Filippucci Company used a budgeted indirect-cost rate for its manufacturing operations, the amount allocated ($200,000) is different from the actual amount incurred ($225,000). Ending balances in the...
Yard Professionals Incorporated experienced the following events in Year 1, its first year of operation: Performed services for $31,000 cash. Purchased $7,800 of supplies on account. A physical count...

The payback period method has been criticised for not taking the time value of money into account.

Question:

Step by Step Answer:

Management Accounting For Decision Makers

Students also viewed these Business questions