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Author Question: The payback method of capital budgeting approach to an investment decision ________. (Read 74 times)

Chloeellawright

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on: Mar 6, 2021

Question 1

The net initial investment for a piece of construction equipment is $2,900,000. Annual cash inflows are expected to increase by $500,000 per year. The equipment has an 10-year useful life. What is the payback period?
◦ 10.00 years
◦ 7.40 years
◦ 5.80 years
◦ 4.80 years

Question 2

The payback method of capital budgeting approach to an investment decision ________.
◦ considers cash flows over the life of the investment
◦ assumes that cash flows occur uniformly throughout the year
◦ considers time value of money
◦ ignores the initial investment
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by Chloeellawright on Mar 6, 2021

jaykayy05

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Reply #1 on: Mar 6, 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.
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Chloeellawright

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review

chereeb

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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