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Author Question: Which of the following is a strength of payback period? A) a disregard for cash flows after the ... (Read 122 times)

kshipps

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on: Jul 10, 2018
Which of the following is a strength of payback period?
 
  A) a disregard for cash flows after the payback period
  B) only an implicit consideration of the timing of cash flows
  C) merely a subjectively determined number
  D) a measure of risk exposure

Question 2

Janice borrows 25,000 from the bank at 15 percent to be repaid in 10 equal annual installments. Calculate the end-of-year payment.
 
  What will be an ideal response?


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nixon_s

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Reply #1 on: Jul 10, 2018
Answer to Question 1

D

Answer to Question 2

Use financial calculator: PV=25,000, I=15, FV=0, N=10, CPT PMT: 4,981.30


kshipps

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Reply 2 on: Jul 10, 2018
Gracias!

connor417

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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