Comparing payback period and discounted payback period. Nielsen, Inc. is switching from the payback period to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Comparing payback period and discounted payback period. Nielsen, Inc. is switching from the payback period to the discounted payback period for small-dollar projects. The cutoff period will remain at three years. Given the following four projects' cash flows,, and using a discount rate of 8%, determine which projects it would have accepted under the payback period and which it will now reject under the discounted payback period. Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Cash Flow Initial Cost Project 1 $12,000 Project 2 Project 3 Project 4 $14,000 $8,000 $24,000 Year 1 $5,000 $7,000 $3,000 $14,000 Year 2 $5,000 $5,500 $3,500 $12,000 Year 3 $5,000 $4,000 $4,000 $ 0 - ☑ k period method? (Select the best response.) Comparing payback period and discounted payback period. Nielsen, Inc. is switching from the payback period to the discounted payback period for small-dollar projects. The cutoff period will remain at three years. Given the following four projects' cash flows,, and using a discount rate of 8%, determine which projects it would have accepted under the payback period and which it will now reject under the discounted payback period. Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Cash Flow Initial Cost Project 1 $12,000 Project 2 Project 3 Project 4 $14,000 $8,000 $24,000 Year 1 $5,000 $7,000 $3,000 $14,000 Year 2 $5,000 $5,500 $3,500 $12,000 Year 3 $5,000 $4,000 $4,000 $ 0 - ☑ k period method? (Select the best response.)
Expert Answer:
Answer rating: 100% (QA)
To determine which projects would have been accepted under the payback period and which will now be rejected under the discounted payback period we ne... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
Which of the following sets are countable, and which are uncountable? a) Zxzxz b) NxR c) An = {SC NIISI = n}, where n Nis fixed. d) A = {SC NIS is finite}. e) B = {SC NIS is infinite).
-
What are the eutectic properties for the the binary liquid-solidphase diagram of the naphthalene-diphenylamine system? The eutectic termperature depends on pressure. The eutectic temperature never...
-
Solve: [1+ log (xy)] dx + [ 1 + x/y ]dy = 0.
-
A man holds a double-sided spherical mirror so that he is looking directly into its convex surface, 45 cm from his face. The magnification of the image of his face is +0.20. What will be the image...
-
Ouellette Co. adjusts its books monthly. On June 30, 2014, notes receivable include the following: Interest is payable on the first day of each month for notes with terms of one year or longer....
-
What is a system property?
-
Data pertaining to the current position of Lucroy Industries Inc. are as follows: Cash ................$ 800,000 Marketable securities.......... 550,000 Accounts and notes receivable (net) .......
-
Description : Analyze the behavior of the object (the rubber ball) in the interaction between the selected step (the first slope/ramp) and the next step (the second slope/ramp). Qualitatively...
-
Evaluate the expression g ( 2 ) given g ( x ) = 2 4 0 - 3 7 - 9 x 2 2
-
Company developed a brand new product called the Mood Marker. The marker will release different colors in response to the user's emotional state. The markers currently cost the company $2.00 each and...
-
Discuss the application of computational fluid dynamics (CFD) in modeling turbulent flow regimes within chemical reactors and its impact on reactor design and performance optimization.
-
Contrast the role of the internal consultant with that of the external consultant. Explain it
-
Discuss the role of process intensification in chemical engineering and provide examples of how it enhances reaction kinetics, mass transfer, and energy efficiency in industrial processes.
-
1. Describe the following: a. Accounting b. Finance 2. Explain FIVE (5) types of financial objectives. 3. Differentiate between horizontal and vertical financial statement analysis.
-
Dwight, 45 and unmarried, earned wages of $212,100 from his job. He had itemized deductions of $17,000. Dwight supported his dad, Michael. Michael lives in his own apartment, earned $6,000 from...
-
SBS Company have received a contract to supply its product to a Health Care Service Hospital. The sales involve supplying 1,250 units every quarter, the sales price is RM 85 per unit. The Client...
-
Verify the cash flow identity: cash flow from assets = cash flow to creditors + cash flow toowners. Partial Income Statement Year Ending 2011 Sales Revenue COGS Fixed Costs SG&A Expenses Depreciation...
-
What are the net fixed assets for the years 2010 and2011? Partial Income Statement Year Ending 2011 Sales Revenue COGS Fixed Costs SG&A Expenses Depreciation S350,000 $140,000 S43,000 S 28,000...
-
Why must a company typically invest in working capital when starting a new project? Why is this investment in working capital recovered at the completion of the project?
-
If the bearing pads at \(A\) and \(B\) support only vertical forces, determine the greatest magnitude of the uniform distributed loading \(w\) that can be applied to the beam. \(\sigma_{\text {allow...
-
The beam is constructed from two boards. If each nail can support a shear force of \(200 \mathrm{lb}\), determine the maximum spacing of the nails, \(s, s^{\prime}\), and \(s^{\prime \prime}\), to...
-
The simply supported beam is composed of two W12 \(\times 22\) sections built up as shown. Determine the maximum uniform loading \(w\) the beam will support if the allowable bending stress is...
Study smarter with the SolutionInn App