In what situations is the payback period method especially useful?
The payback period method is especially useful in areas in which technology changes rapidly, such as in Internet companies, and when risk is high, such as when investing in emerging countries. In these situations, it is important to recover the cost of investments as quickly as possible.
You might also like to view...
Describe the theory of constraints. In doing so, define bottlenecks and throughput
Gross profit per square foot is utilized by a supermarket owner to assign space among merchandise assortments within a department. Larger amounts of space go to the product categories and brands with the highest profitability per square foot
This retailer determines space needs by _____. a. the sales–productivity ratio b. market segment product groupings c. the model stock approach d. the law of diminishing returns
The net present value decision rule is: When an asset's expected cash flows yield a positive net present value when discounted at the required rate of return, the asset should be acquired.
Answer the following statement true (T) or false (F)
Keri's will states, "I give to my sister Liz my condominium in Malibu, California." This is
A. a general legacy. B. a residuary. C. a specific bequest. D. a specific devise.