Payback is frequently used to analyze independent projects because:

A) it considers the time value of money.
B) all relevant cash flows are included in the analysis.
C) it is easy and quick to calculate.
D) it is the most desirable of all the available analytical methods from a financial perspective.
E) it produces better decisions than those made using either NPV or IRR.


C) it is easy and quick to calculate.

Business

You might also like to view...

Answer the following statements true (T) or false (F)

1. When job boundaries are ambiguous, employees are less possessive, and conflict is likely to be minimized.  2. Avoiding it is never an appropriate response to conflict.  3. The weakness of accommodating as a method for handling conflict is that it is only a temporary fix that fails to address the underlying problem.  4. The conflict-handling style of compromising is appropriate when both parties to a conflict have equal power. 

Business

The Szakos Company engaged in the following transactions during the current year:a) Acquired $50,000 of cash by issuing common stock to ownersb) Paid $10,000 to acquire manufacturing equipmentc) Paid $5,000 cash for materials used in productiond) Paid $2,000 for wages of production workerse) Paid $8,000 in general, selling, and administrative costsf) Recognized $1,000 of depreciation on the manufacturing equipmentg) Sold inventory for $18,000 cashh) The cost of the inventory sold was $6,500Required:Show the balance sheet and income statement effects of the transactions by completing the financial statement model provided.

What will be an ideal response?

Business

Bagsby owns a business selling insects for organic gardening. Bagsby is seeking a loan from First Natural Bank. The loan officer is asking that the loan be secured by Bagsby's inventory of insects, now owned or hereafter acquired. In order to do this, a new security agreement will need to be signed each time Bagsby gets new insects or sells his insects

a. True b. False Indicate whether the statement is true or false

Business

Equipment risks are external risks

Indicate whether the statement is true or false

Business