*[PDF] Construction Project and Management MCQs Latest 2012-9-9 · 7- 15 Payback Method ÂThe limitation of payback method: ÎPayback does not consider any cash flows that arrive after the payback period ÎPayback gives equal weight to all cash flows arriving before the cutoff period (an improved method is to calculate the discounted payback period)*

Multiple Choice Questions on Capital Budgeting. payback period is the time required to reach break even. So it is the time when the. investment=returns, however till the project is completed the returns dont come in and payback period is calculated after the project completes., 2019-10-30 · t Answer all the questions in Section A and Section B. Check your answers if you have time at the end. P42132RA ©2013 Pearson Education Ltd. 1/1/1/1/1/1 *P42132RA0116* 2 *P42132RA0216* SECTION A Using the data in Table 1, calculate the Payback Period ….

2013-7-1 · Payback can also be adjusted for risk by discounting future cash flows with a risk-adjusted discount rate, i.e. by using the discounted payback method. The normal payback period target can be applied to the discounted cash flows, which will have 2011-6-22 · 3.2 Investment appraisal - questions. In this section are a series of questions on the topic - Investment appraisal. The questions may include various types of questions. For example: Self-test questions - on-screen questions that give immediate marking and feedback

payback period is the time required to reach break even. So it is the time when the. investment=returns, however till the project is completed the returns dont come in and payback period is calculated after the project completes. 2007-5-12 · Capital Budgeting Techniques Practice Questions. Is it possible for a project to have a payback period of 2 years and yet have a negative net present value? Explain. What is the decision-criteria for the profitability index? Does this criteria agree with that of the net present value technique?

Payback method multiple choice questions and answers (MCQs), payback method quiz answers pdf to learn cost accounting online courses. Payback method quiz questions and answers pdf, if an initial investment is $765000, payback period is 4.5 years, then increase in future cash flow will be, with answers for CPA certification. 2013-7-1 · Payback can also be adjusted for risk by discounting future cash flows with a risk-adjusted discount rate, i.e. by using the discounted payback method. The normal payback period target can be applied to the discounted cash flows, which will have

2005-4-6 · Payback Period Advantages Disadvantages 1. Simple to compute 2. Provides some information on the risk of the investment 3. Provides a crude measure of liquidity 1. No concrete decision criteria to indicate whether an investment increases the firm's value 2. Ignores cash flows beyond the payback period 3. Ignores the time value of money 4. 2006-5-30 · Discounted Payback Period = -$15,000 + $4,950.50 + $4,901.48 + $4,852.95 = -$295.04 so the payback period is over 3 years and the project is a no-go! Comparing Payback Period and Discounted Payback Period – Neilsen Incorporated is switching from Payback Period to Discounted Payback Period for small dollar projects.

Answer the following questions and then press 'Submit' to get your score. if the business concerned requires a return of 10% on sums invested? Answers are given to the nearest £'000. a) £692k b) £432k c) £ The payback period measures the time that a project will take to generate enough cash flows to cover the initial 2006-9-27 · Solutions to Questions and Problems 1. Payback = 2.75 years 2. If the initial cost is $3,400, the payback period is: Payback = 4.10 years For the $3,400 cost, the payback period is: Payback = 4.10 years For an initial cost of $4,450, the payback period is: Payback = 5.36 years The payback period for an initial cost of $6,800 is

2019-10-29 · The discounted payback period of 2·7 years is greater than the maximum target discounted payback period of two years and so from this perspective the investment project is not financially acceptable. This commentary has been written to accompany the published sample questions and answers and is written based on the observations of markers 2013-6-19 · 4.1 Payback Period Deﬁnition: Payback period is the minimum s so that CF 1 + CF 2 + ···+ CF s ≥−CF 0 = I0 In words, s is the minimum length of time such that the sum of cash ﬂows from a project is positive. Decision Criterion Using Payback Period • For independent projects: Accept if s is less than or equal to some ﬁxed threshold

You can now earn points by answering the unanswered questions listed. You are allowed to answer only once per question. Payback Questions and Answers - Math Discussion 2013-6-19 · 4.1 Payback Period Deﬁnition: Payback period is the minimum s so that CF 1 + CF 2 + ···+ CF s ≥−CF 0 = I0 In words, s is the minimum length of time such that the sum of cash ﬂows from a project is positive. Decision Criterion Using Payback Period • For independent projects: Accept if s is less than or equal to some ﬁxed threshold

Capital budgeting techniques [Exercises] Start here or click on a link below: Exercise-1 (Computation of simple and compound interest) Exercise-10 (Payback period method with salvage value) Exercise-11 (Internal rate of return method – cash inflow) Exercise-12 (Accounting/simple rate of return method with salvage value) The discounted payback period is longer than the payback period (i.e., 3.48 is larger than 3.125). Both the discounted payback period and payback period methods are useful. The payback period can also be used to approximate the internal rate of return (IRR) on an investment. This technique is called the payback reciprocal method.

TOPICS: building technology and materials mcq pdf civil engineering Construction and Project Management mcqs civil engineering cpm mcqs Construction and Project Management mcq pdf Construction and Project Management mcq questions Construction and Project Management mcq questions and answers Construction and Project Management mcqs pdf Construction and Project Management mcqs pdf … 2013-7-1 · Payback can also be adjusted for risk by discounting future cash flows with a risk-adjusted discount rate, i.e. by using the discounted payback method. The normal payback period target can be applied to the discounted cash flows, which will have

The PP concept holds that all other things being equal, the better investment is the one with the shorter payback. Example of a Payback Period calculation: For example, take a project costing a total of $200,000. The expected returns of the project amount to $40,000 annually. PP would be $200,000 ÷ $40,000 = 5 years. Pay back period ..chapter solution to problems... 1. Chapter 9 Capital Budgeting Techniques Solutions to Problems Note to instructor: In most problems involving the internal rate of return calculation, a financial calculator has been used.

Answers accaglobal.com. 2006-8-1 · Solutions to Capital Budgeting Practice Problems 1. The timeline looks like this: R = 5.5% 012 3 For the undiscounted payback period, no discount rate is used. Use the undiscounted cash flows: To answer these questions, it helps to construct a table of the cash flows, along with, Payback method multiple choice questions and answers (MCQs), payback method quiz answers pdf to learn cost accounting online courses. Payback method quiz questions and answers pdf, if an initial investment is $765000, payback period is 4.5 years, then increase in future cash flow will be, with answers for CPA certification..

Chapter 8 Capital Budgeting Process and Technique. 2011-10-19 · Collection of database exam solutions Rasmus Pagh October 19, 2011 This is a supplement to the collection of database exams used in the course Introduction to Database Design, which includes answers. The idea is that it can be used to: Check your own solutions against. long the payback period is. Also, a description is included of how the https://en.wikipedia.org/wiki/Margaret_Atwood 2007-5-12 · Capital Budgeting Techniques Practice Questions. Is it possible for a project to have a payback period of 2 years and yet have a negative net present value? Explain. What is the decision-criteria for the profitability index? Does this criteria agree with that of the net present value technique?.

What is the Payback Period? The Payback Period shows how long it takes for a business to recoup its investment. This type of analysis allows firms to compare alternative investment opportunities and decide on a project that returns its investment in the shortest time, if that criteria is important to them. 2012-9-9 · 7- 15 Payback Method ÂThe limitation of payback method: ÎPayback does not consider any cash flows that arrive after the payback period ÎPayback gives equal weight to all cash flows arriving before the cutoff period (an improved method is to calculate the discounted payback period)

2010-5-4 · A 2 Explain which project should be selected if payback is the only criterion used – and why. [3] Project Y has a quicker payback and should be selected. A quicker payback reduces risk and is important to businesses that have limited fi nance available. 3 Calculate ARR for both projects. [6] ARR = average profi t ÷ initial investment × 100 The PP concept holds that all other things being equal, the better investment is the one with the shorter payback. Example of a Payback Period calculation: For example, take a project costing a total of $200,000. The expected returns of the project amount to $40,000 annually. PP would be $200,000 ÷ $40,000 = 5 years.

2013-7-1 · Payback can also be adjusted for risk by discounting future cash flows with a risk-adjusted discount rate, i.e. by using the discounted payback method. The normal payback period target can be applied to the discounted cash flows, which will have 2012-9-9 · 7- 15 Payback Method ÂThe limitation of payback method: ÎPayback does not consider any cash flows that arrive after the payback period ÎPayback gives equal weight to all cash flows arriving before the cutoff period (an improved method is to calculate the discounted payback period)

2019-10-29 · The discounted payback period of 2·7 years is greater than the maximum target discounted payback period of two years and so from this perspective the investment project is not financially acceptable. This commentary has been written to accompany the published sample questions and answers and is written based on the observations of markers 2019-11-5 · Revised Spring 2018 Chapter 12 Review Questions Practice Problem #4 a) Net investment required = $180,000 = 4.8 years Annual cash flow $37,500 The equipment would not be purchased, since the 4.8 year payback period exceeds the company’s maximum 4 year payback period. b)

2006-9-27 · Solutions to Questions and Problems 1. Payback = 2.75 years 2. If the initial cost is $3,400, the payback period is: Payback = 4.10 years For the $3,400 cost, the payback period is: Payback = 4.10 years For an initial cost of $4,450, the payback period is: Payback = 5.36 years The payback period for an initial cost of $6,800 is 2010-5-4 · A 2 Explain which project should be selected if payback is the only criterion used – and why. [3] Project Y has a quicker payback and should be selected. A quicker payback reduces risk and is important to businesses that have limited fi nance available. 3 Calculate ARR for both projects. [6] ARR = average profi t ÷ initial investment × 100

2011-6-22 · Accounts and finance. Table of Contents. Topic pack - Accounts and finance - introduction Payback & ARR - self-test questions. Why not have a go at the following examples to see how well you have understood the calculation of payback and ARR? It has the lowest payback period (just) of 2 years and 8 months and also has the best ARR The PP concept holds that all other things being equal, the better investment is the one with the shorter payback. Example of a Payback Period calculation: For example, take a project costing a total of $200,000. The expected returns of the project amount to $40,000 annually. PP would be $200,000 ÷ $40,000 = 5 years.

Payback method multiple choice questions and answers (MCQs), payback method quiz answers pdf to learn cost accounting online courses. Payback method quiz questions and answers pdf, if an initial investment is $765000, payback period is 4.5 years, then increase in future cash flow will be, with answers for CPA certification. 2007-11-18 · Answers are given at the end of the document. Questions 1 to 20: Multiple Choice 1) For the following set of future values of an engineering project, start-up occurs right at the beginning of year 3. Year Future Value 0 -105 1 -85 2 -55 3 25 4 25 5 28 6 35 7 45 8 45 9 48 10 49 What is the simple payback period for this project? a) 2 years.

CAPITAL BUDGETING: PRACTICE QUESTIONS QUESTION 1 (BH-539) B. Davis Industries must choose between a gas-powered and an electric-powered forklift truck for moving materials in its factory. Since both forklifts perform the same function, the firm will choose only one. What is the payback period on each of the following projects? 2007-11-18 · Answers are given at the end of the document. Questions 1 to 20: Multiple Choice 1) For the following set of future values of an engineering project, start-up occurs right at the beginning of year 3. Year Future Value 0 -105 1 -85 2 -55 3 25 4 25 5 28 6 35 7 45 8 45 9 48 10 49 What is the simple payback period for this project? a) 2 years.

2019-11-5 · Revised Spring 2018 Chapter 12 Review Questions Practice Problem #4 a) Net investment required = $180,000 = 4.8 years Annual cash flow $37,500 The equipment would not be purchased, since the 4.8 year payback period exceeds the company’s maximum 4 year payback period. b) 2015-5-5 · CHAPTER 9 NET PRESENT VALUE AND OTHER INVESTMENT CRITERIA Answers to Concepts Review and Critical Thinking Questions 1. A payback period less than the project’s life means that the NPV is positive for a zero discount rate,

Answer the following questions and then press 'Submit' to get your score. if the business concerned requires a return of 10% on sums invested? Answers are given to the nearest £'000. a) £692k b) £432k c) £ The payback period measures the time that a project will take to generate enough cash flows to cover the initial 75985278 sample-questions-of-capital-budgeting 1. Sample Questions Of Capital Budgeting 1. (a) You are required to calculate the total present value of inflow at rate of discount of 12% of following data. Year end Cash inflows $ 1 2,30,000 2 2,28,000 3 2,78,000 2.

2006-8-1 · Solutions to Capital Budgeting Practice Problems 1. The timeline looks like this: R = 5.5% 012 3 For the undiscounted payback period, no discount rate is used. Use the undiscounted cash flows: To answer these questions, it helps to construct a table of the cash flows, along with 2019-10-9 · Multiple Choice Questions on Capital Budgeting. Add Remove. Project A which has a payback period of 2.25 years. The solution answers and explains Multiple Choice Questions on Capital Budgeting . $2.19. Add Solution to Cart Remove from Cart. Purchase Solution. $2.19.

CHAPTER 9 NET PRESENT VALUE AND OTHER. What is the Payback Period? The Payback Period shows how long it takes for a business to recoup its investment. This type of analysis allows firms to compare alternative investment opportunities and decide on a project that returns its investment in the shortest time, if that criteria is important to them., You can now earn points by answering the unanswered questions listed. You are allowed to answer only once per question. Payback Questions and Answers - Math Discussion.

Quiz & Worksheet Calculating Payback Period Study.com. 2019-10-30 · t Answer all the questions in Section A and Section B. Check your answers if you have time at the end. P42132RA ©2013 Pearson Education Ltd. 1/1/1/1/1/1 *P42132RA0116* 2 *P42132RA0216* SECTION A Using the data in Table 1, calculate the Payback Period …, 2015-5-5 · CHAPTER 9 NET PRESENT VALUE AND OTHER INVESTMENT CRITERIA Answers to Concepts Review and Critical Thinking Questions 1. A payback period less than the project’s life means that the NPV is positive for a zero discount rate,.

2011-2-11 · A company is considering investing in a machine with a capital cost of £300,000 with a useful life of 4 years. Annual running costs are expected to amount to £276,000 including straight line depreciation of £70,000 per annum. Answer the following questions and then press 'Submit' to get your score. if the business concerned requires a return of 10% on sums invested? Answers are given to the nearest £'000. a) £692k b) £432k c) £ The payback period measures the time that a project will take to generate enough cash flows to cover the initial

Payback method multiple choice questions and answers (MCQs), payback method quiz answers pdf to learn cost accounting online courses. Payback method quiz questions and answers pdf, if an initial investment is $765000, payback period is 4.5 years, then increase in future cash flow will be, with answers for CPA certification. 2019-10-29 · ADVANCED INVESTMENT APPRAISAL Investment appraisal is one of the eight core topics within Paper F9, Financial Management and it is a topic which has been well represented in the F9 exam. The methods of investment appraisal are payback, accounting rate of return and the discounted cash flow methods of net

2007-11-18 · Answers are given at the end of the document. Questions 1 to 20: Multiple Choice 1) For the following set of future values of an engineering project, start-up occurs right at the beginning of year 3. Year Future Value 0 -105 1 -85 2 -55 3 25 4 25 5 28 6 35 7 45 8 45 9 48 10 49 What is the simple payback period for this project? a) 2 years. 2019-10-26 · How much do you know about using the discounted payback period method and determining the payback period with a discount rate. Study.com has a library of 550,000 questions and answers …

CAPITAL BUDGETING: PRACTICE QUESTIONS QUESTION 1 (BH-539) B. Davis Industries must choose between a gas-powered and an electric-powered forklift truck for moving materials in its factory. Since both forklifts perform the same function, the firm will choose only one. What is the payback period on each of the following projects? 2011-10-19 · Collection of database exam solutions Rasmus Pagh October 19, 2011 This is a supplement to the collection of database exams used in the course Introduction to Database Design, which includes answers. The idea is that it can be used to: Check your own solutions against. long the payback period is. Also, a description is included of how the

2019-11-1 · Quiz questions cover considerations taken in the payback period method as well as even and uneven cash flows. Quiz & Worksheet Goals To be more specific, these practices will quiz you on: 2011-6-22 · 3.2 Investment appraisal - questions. In this section are a series of questions on the topic - Investment appraisal. The questions may include various types of questions. For example: Self-test questions - on-screen questions that give immediate marking and feedback

2010-5-4 · A 2 Explain which project should be selected if payback is the only criterion used – and why. [3] Project Y has a quicker payback and should be selected. A quicker payback reduces risk and is important to businesses that have limited fi nance available. 3 Calculate ARR for both projects. [6] ARR = average profi t ÷ initial investment × 100 2006-9-27 · Solutions to Questions and Problems 1. Payback = 2.75 years 2. If the initial cost is $3,400, the payback period is: Payback = 4.10 years For the $3,400 cost, the payback period is: Payback = 4.10 years For an initial cost of $4,450, the payback period is: Payback = 5.36 years The payback period for an initial cost of $6,800 is

2006-8-1 · Solutions to Capital Budgeting Practice Problems 1. The timeline looks like this: R = 5.5% 012 3 For the undiscounted payback period, no discount rate is used. Use the undiscounted cash flows: To answer these questions, it helps to construct a table of the cash flows, along with 2005-4-6 · Payback Period Advantages Disadvantages 1. Simple to compute 2. Provides some information on the risk of the investment 3. Provides a crude measure of liquidity 1. No concrete decision criteria to indicate whether an investment increases the firm's value 2. Ignores cash flows beyond the payback period 3. Ignores the time value of money 4.

2007-5-12 · Capital Budgeting Techniques Practice Questions. Is it possible for a project to have a payback period of 2 years and yet have a negative net present value? Explain. What is the decision-criteria for the profitability index? Does this criteria agree with that of the net present value technique? 2006-8-1 · Solutions to Capital Budgeting Practice Problems 1. The timeline looks like this: R = 5.5% 012 3 For the undiscounted payback period, no discount rate is used. Use the undiscounted cash flows: To answer these questions, it helps to construct a table of the cash flows, along with

2015-5-5 · CHAPTER 9 NET PRESENT VALUE AND OTHER INVESTMENT CRITERIA Answers to Concepts Review and Critical Thinking Questions 1. A payback period less than the project’s life means that the NPV is positive for a zero discount rate, 2005-4-6 · Payback Period Advantages Disadvantages 1. Simple to compute 2. Provides some information on the risk of the investment 3. Provides a crude measure of liquidity 1. No concrete decision criteria to indicate whether an investment increases the firm's value 2. Ignores cash flows beyond the payback period 3. Ignores the time value of money 4.

2019-10-26 · How much do you know about using the discounted payback period method and determining the payback period with a discount rate. Study.com has a library of 550,000 questions and answers … 2015-5-5 · CHAPTER 9 NET PRESENT VALUE AND OTHER INVESTMENT CRITERIA Answers to Concepts Review and Critical Thinking Questions 1. A payback period less than the project’s life means that the NPV is positive for a zero discount rate,

Capital Budgeting Practice Questions and Problems. 2007-5-12 · Capital Budgeting Techniques Practice Questions. Is it possible for a project to have a payback period of 2 years and yet have a negative net present value? Explain. What is the decision-criteria for the profitability index? Does this criteria agree with that of the net present value technique?, 2011-2-11 · A company is considering investing in a machine with a capital cost of £300,000 with a useful life of 4 years. Annual running costs are expected to amount to £276,000 including straight line depreciation of £70,000 per annum..

Investment appraisal Peterhouse Boys' School. 2019-10-26 · How much do you know about using the discounted payback period method and determining the payback period with a discount rate. Study.com has a library of 550,000 questions and answers …, 2019-10-30 · t Answer all the questions in Section A and Section B. Check your answers if you have time at the end. P42132RA ©2013 Pearson Education Ltd. 1/1/1/1/1/1 *P42132RA0116* 2 *P42132RA0216* SECTION A Using the data in Table 1, calculate the Payback Period ….

Multiple Choice Questions harpercollege.edu. 2007-5-12 · Capital Budgeting Techniques Practice Questions. Is it possible for a project to have a payback period of 2 years and yet have a negative net present value? Explain. What is the decision-criteria for the profitability index? Does this criteria agree with that of the net present value technique? https://en.wikipedia.org/wiki/Margaret_Atwood 2013-3-28 · PD5 Exam Exemplar Questions Mar2013 Page 3 of 10 other interested stakeholders. At the completion stage of the project life cycle, the software can be used to produce the completion report, since all information on costs and time will have been captured during the life of the project..

2007-11-18 · Answers are given at the end of the document. Questions 1 to 20: Multiple Choice 1) For the following set of future values of an engineering project, start-up occurs right at the beginning of year 3. Year Future Value 0 -105 1 -85 2 -55 3 25 4 25 5 28 6 35 7 45 8 45 9 48 10 49 What is the simple payback period for this project? a) 2 years. 2019-10-30 · t Answer all the questions in Section A and Section B. Check your answers if you have time at the end. P42132RA ©2013 Pearson Education Ltd. 1/1/1/1/1/1 *P42132RA0116* 2 *P42132RA0216* SECTION A Using the data in Table 1, calculate the Payback Period …

2006-8-1 · Solutions to Capital Budgeting Practice Problems 1. The timeline looks like this: R = 5.5% 012 3 For the undiscounted payback period, no discount rate is used. Use the undiscounted cash flows: To answer these questions, it helps to construct a table of the cash flows, along with 2006-8-1 · Solutions to Capital Budgeting Practice Problems 1. The timeline looks like this: R = 5.5% 012 3 For the undiscounted payback period, no discount rate is used. Use the undiscounted cash flows: To answer these questions, it helps to construct a table of the cash flows, along with

What is the Payback Period? The Payback Period shows how long it takes for a business to recoup its investment. This type of analysis allows firms to compare alternative investment opportunities and decide on a project that returns its investment in the shortest time, if that criteria is important to them. What is the Payback Period? The Payback Period shows how long it takes for a business to recoup its investment. This type of analysis allows firms to compare alternative investment opportunities and decide on a project that returns its investment in the shortest time, if that criteria is important to them.

2011-6-22 · 3.2 Investment appraisal - questions. In this section are a series of questions on the topic - Investment appraisal. The questions may include various types of questions. For example: Self-test questions - on-screen questions that give immediate marking and feedback 2011-6-22 · Accounts and finance. Table of Contents. Topic pack - Accounts and finance - introduction Payback & ARR - self-test questions. Why not have a go at the following examples to see how well you have understood the calculation of payback and ARR? It has the lowest payback period (just) of 2 years and 8 months and also has the best ARR

75985278 sample-questions-of-capital-budgeting 1. Sample Questions Of Capital Budgeting 1. (a) You are required to calculate the total present value of inflow at rate of discount of 12% of following data. Year end Cash inflows $ 1 2,30,000 2 2,28,000 3 2,78,000 2. 75985278 sample-questions-of-capital-budgeting 1. Sample Questions Of Capital Budgeting 1. (a) You are required to calculate the total present value of inflow at rate of discount of 12% of following data. Year end Cash inflows $ 1 2,30,000 2 2,28,000 3 2,78,000 2.

2015-5-5 · CHAPTER 9 NET PRESENT VALUE AND OTHER INVESTMENT CRITERIA Answers to Concepts Review and Critical Thinking Questions 1. A payback period less than the project’s life means that the NPV is positive for a zero discount rate, 2006-9-27 · Solutions to Questions and Problems 1. Payback = 2.75 years 2. If the initial cost is $3,400, the payback period is: Payback = 4.10 years For the $3,400 cost, the payback period is: Payback = 4.10 years For an initial cost of $4,450, the payback period is: Payback = 5.36 years The payback period for an initial cost of $6,800 is

75985278 sample-questions-of-capital-budgeting 1. Sample Questions Of Capital Budgeting 1. (a) You are required to calculate the total present value of inflow at rate of discount of 12% of following data. Year end Cash inflows $ 1 2,30,000 2 2,28,000 3 2,78,000 2. You can now earn points by answering the unanswered questions listed. You are allowed to answer only once per question. Payback Questions and Answers - Math Discussion

You can now earn points by answering the unanswered questions listed. You are allowed to answer only once per question. Payback Questions and Answers - Math Discussion 2019-10-30 · t Answer all the questions in Section A and Section B. Check your answers if you have time at the end. P42132RA ©2013 Pearson Education Ltd. 1/1/1/1/1/1 *P42132RA0116* 2 *P42132RA0216* SECTION A Using the data in Table 1, calculate the Payback Period …

The PP concept holds that all other things being equal, the better investment is the one with the shorter payback. Example of a Payback Period calculation: For example, take a project costing a total of $200,000. The expected returns of the project amount to $40,000 annually. PP would be $200,000 ÷ $40,000 = 5 years. 2007-5-12 · Capital Budgeting Techniques Practice Questions. Is it possible for a project to have a payback period of 2 years and yet have a negative net present value? Explain. What is the decision-criteria for the profitability index? Does this criteria agree with that of the net present value technique?

2006-9-27 · Solutions to Questions and Problems 1. Payback = 2.75 years 2. If the initial cost is $3,400, the payback period is: Payback = 4.10 years For the $3,400 cost, the payback period is: Payback = 4.10 years For an initial cost of $4,450, the payback period is: Payback = 5.36 years The payback period for an initial cost of $6,800 is 2019-10-29 · The discounted payback period of 2·7 years is greater than the maximum target discounted payback period of two years and so from this perspective the investment project is not financially acceptable. This commentary has been written to accompany the published sample questions and answers and is written based on the observations of markers

2019-10-29 · ADVANCED INVESTMENT APPRAISAL Investment appraisal is one of the eight core topics within Paper F9, Financial Management and it is a topic which has been well represented in the F9 exam. The methods of investment appraisal are payback, accounting rate of return and the discounted cash flow methods of net 2005-4-6 · Payback Period Advantages Disadvantages 1. Simple to compute 2. Provides some information on the risk of the investment 3. Provides a crude measure of liquidity 1. No concrete decision criteria to indicate whether an investment increases the firm's value 2. Ignores cash flows beyond the payback period 3. Ignores the time value of money 4.