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I address these questions in Video #1 (questions 1 and 2) and Video #2 (questions 3 and 4) from the Chapter 14 module. These are
I address these questions in Video #1 (questions 1 and 2) and Video #2 (questions 3 and 4) from the Chapter 14 module. These are also discussed in your book. 1. The Payback method is not a true measure of the profitability of an investment. It just tells a manager how many years are required to recover the original investment. What are the two additional criticisms of the Payback method that I mention in Video #1 or can be found on page 645 of your book? 2. The Simple Rate of Return method suffers from two important limitations. First, it focuses on accounting net operating income rather than cash flows. What is the other limitation (or criticism) of the Simple Rate of Return method that I mention in Video #1 or can be found on page 663 of your book? 3. What are the two important, simplifying assumptions associated with the Net Present Value method that I mention in Video #2 or can be found on page 648 of your book? 2. The Simple Rate of Return method suffers from two important limitations. First, it focuses on accounting net operating income rather than cash flows. What is the other limitation (or criticism of the Simple Rate of Return method that I mention in Video #1 or can be found on page 663 of your book? 3. What are the two important, simplifying assumptions associated with the Net Present Value method that I mention in Video #2 or can be found on page 648 of your book? 4. What is the questionable assumption' made in the Internal Rate of Return method that I mention in Video #2 or can be found on page 655 of your book
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