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What information does the cash payback period ignore that in included by the net present value method?
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A method of evaluating capital investment proposals that ignore present value includes?
using payback period as the primary metric for decision making. The payback period measures the length of time it takes for the initial investment to be recovered from the project's cash flows. This method disregards the time value of money and does not account for the profitability or net present value of the investment.
What are the weaknesses of the payback method?
the payback method ... is a method to evaluate the project in capital budgeting ... or simply in a long term dicision making for the entity .and because it is a long term in nature ..... the risk is high ... by evaluatining methods ... we try to reduce the uncertinity ... one of the methods ...is payback method . the disadvantage of the payback method is ...it does not concern with the time value of money theory ....the second one is ...it ignore the incash flow and the outcash flow of the project , after the payback period .
How do I ignore my hunger?
Why would you need to ignore your hunger? More information is needed.
A method of evaluating capital investment proposals that ignore present value?
internal rate of return
Method of evaluating capital investment proposals that ignore present value?
internal rate of return
What is the best way to deal with conflicting and ambiguous information?
Ignore it and go to the source
Why do ex girlfriends ignore the present girlfriend?
The ex girlfriend may be bitter, or she may simply not like the present girlfriend because she is literally replacing her & she has what the ex girlfriend had.
What are the advantages and disadvantages of pay back period?
Advantages and Disadvantages of Payback PeriodPayback period is a capital budgeting concept which refers to period of time which is required for a project to generate a return on investment which will cover the original investment made by a company on the initial project cost. So for example if the initial project cost is $50000 and annual cash flow from such project is $10000 then it implies that payback project would be 5 years. The advantage of using payback period is that its ease of use and anybody who is having limited financial knowledge can apply it. It is also beneficial for those companies who are recently established and want to know the time frame in which they would recover their original investment, therefore those companies which do not want to take risk and want quick return on their investments can select those projects which have low payback period and ignore those projects which require long gestation projects.While disadvantage of payback period is that ignores an important concept which is time value of money and therefore may not present true picture when it comes to evaluating cash flows of a project. It also ignores cash flows beyond the payback period and therefore it does not take into account the complete return which a project can generate and therefore it may reject a project which in the long term may be beneficial for a company.
What aspect of your present job do you find challenging?
routines, closing the ceiling of growth, high-level management ignore me,
What is attention decrement?
When we ignore later information that might change our initial judgment into question.
When gathering information from longer sources such as books how can you determine what to read and what to ignore?
You want to focus on the information that is relevant to and supports your thesis statement.
How do you draw the net of a cube?
It looks like this.........._...._|_|_...|_|_|_|......|_|......|_|Sorry it is not the best image in the world, but it is the best I could do. Just ignore the dots, they are not included in the drawing
