For each of the capital budgeting methods listed below, place an X in the correct column, indicating the measurement basis of each, the ability to make comparison among projects, and whether each method reflects or ignores the time value of money. ?Measurement BasisComparison among projectsTime value of money?CashflowsAccrualincomeAllowscomparisonDifficulttocompare Reflectstime valueof money Ignorestime valueof moneyPayback period??????Accounting rate of return??????Net present value??????Internal rate ofreturn??????
What will be an ideal response?
? | Measurement Basis | Comparison among projects | Time value of money | |||
? | Cash flows | Accrual income | Allows comparison | Difficult to compare | Reflects time value of money | Ignores time value of money |
Payback period | X | ? | X | ? | ? | X |
Accounting rate of return | ? | X | X | ? | ? | X |
Net present value | X | ? | X | X | X | ? |
Internal rate of return | X | ? | X | ? | X | ? |
You might also like to view...
Which of the following statements about risk is true?
A. The higher the risk, the higher the expected return. B. The higher the risk, the lower the return. C. The lower the risk, the greater the maturity value of the investment. D. The higher the risk, the lower the maturity value of the investment. E. The higher the risk, the lower the risk-free rate.
The _____ model provides application software developed and maintained by a third-party provider and offered to organizations for a recurring fee.
Fill in the blank(s) with the appropriate word(s).
Refer to Oakland Athletics. Other teams have an average payroll of $85 million. Beane’s payroll for the Athletics is only $33 million. His ability to be frugal and yet build a successful team is in large part due to his ability to set goals, give directions, and assign tasks. In other words, Beane excels in ____.
A) consideration B) creating instrumentality C) using decision rules D) initiating structure E) participative management
Discuss the relationship between honesty and leadership.
What will be an ideal response?