This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Some firms use the payback period as a decision criterion or as a supplement to sophisticated ... (Read 65 times)

P68T

  • Hero Member
  • *****
  • Posts: 509
on: Apr 25, 2021

Question 1

Sara Flea Collar Inc. is evaluating an overseas expansion that will cost $1 million and is expected to generate the following cash flows: year 1: -$250,000; year 2: +$450,000; year 3: +$550,000; and year 4: +$800,000. What is the payback period?
◦ 3.00 years
◦ 3.13 years
◦ 3.31 years
◦ 3.75 years
◦ 4.00 years

Question 2

Some firms use the payback period as a decision criterion or as a supplement to sophisticated decision techniques, because
◦ it explicitly considers the time value of money.
◦ it can be viewed as a measure of risk exposure.
◦ the determination of payback is an objectively determined criteria.
◦ it can take the place of the net present value approach.
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by P68T on Apr 25, 2021

Jmfn03

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 50% of students answer this correctly


P68T

  • Member
  • Posts: 509
Reply 2 on: Apr 25, 2021
Gracias!

meow1234

  • Member
  • Posts: 333
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Medications that are definitely not safe to take when breastfeeding include radioactive drugs, antimetabolites, some cancer (chemotherapy) agents, bromocriptine, ergotamine, methotrexate, and cyclosporine.

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

A strange skin disease referred to as Morgellons has occurred in the southern United States and in California. Symptoms include slowly healing sores, joint pain, persistent fatigue, and a sensation of things crawling through the skin. Another symptom is strange-looking, threadlike extrusions coming out of the skin.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Mars's average distance from the Sun is roughly 230 million km (1.5 AU) and its orbital period Mars's average distance from the Sun is roughly 230 million km (1.5 AU) and its orbital period
This modified model of Easton’s systems theory puts government decision makers as the source of pol This modified model of Easton’s systems theory puts government decision makers as the source of pol
Ethical Decision-Making Model Ethical Decision-Making Model
Anthroposphere Quarterly Period Anthroposphere Quarterly Period
Embryonic Period Embryonic Period
Embryonic Period Embryonic Period
Video: Neurotransmission at chemical synapses & Excitory and inhibitory potentials

For a complete list of videos, visit our video library