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Please give me an answers that 108 to 114. In which of the following situations would using the payback method to evaluate an investment be
Please give me an answers that 108 to 114.
In which of the following situations would using the payback method to evaluate an investment be a good idea? To assess projects that Require little investment when compared to the size of the company. To assess the value of potential capital or technological improvements. To determine which project of several options is the best investment. All of these answers. Which of the following disadvantages of the payback method can be rectified? The payback method does not consider opportunity cost. The payback method does not account for the time value of money. The payback method ignores cash flows beyond the payback period. The payback method does not gauge the risk of an investment. Which of the following is a way the internal rate of return (IRR)is used in capital budgeting? As the effective interest rate for savings and loans. To determine the average annual return of an investment. As a means to compare the profitability of different investments. All of these answers. A project has an initial investment requirement of $100,000. In year l, it should earn $25,000; in year two $30,000 and in year 3, $50,000. What is the project's internal rate of return? 5% 7.5% 6% 6.5% Which of the following describes an advantage the internal rate of return has over net present value for capital budgeting purposes? The IRR method is clear an easy to understand. The IRR method recognizes the time value of money. Internal rate of return is an indicator of the efficiency, quality or yield of an investment. All of these answers. In which of the following situations would it be appropriate to use the IRR method to make an investment decision To compare two investments that have different durations. To assess a project which cash flows fluctuate between positive and ocgaiAR, To compare two projects has an equal initial investment. All of these answers. You are analyzing two different investments and will present your findings to company executives. Both projects have cash flows that alternate between positive and negative. Which budgeting method should you use to evaluate the projects? Internal Rate of Return. Net Present Value. Payback period method. Modified Internal Rate of ReturnStep by Step Solution
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