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Question
In capital budgeting analyses, the primary difference between the traditional payback period (PB) technique and the discounted payback period (DPB) technique is that the DPB:
a. considers cash flows that occur after the discounted payback period.
b. is always shorter than the traditional payback period.
c. considers the time value of money.
d. ensures a shorter payback period for a project, because projects with longer payback periods generally are accepted using the DPB technique.
e. ensures the amount of the original investment is recovered more quickly from the project's cash flows.
Answer
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Related questions
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Q:
Which of the following agreements is included in the Basel III Accord (2010)?
a. Agreement to increase banks' capital (owners' equity) requirements in an effort to reduce the risk that mega bank failures will cause future financial crises
b. Agreement to put restrictions on the ability of the U.S. government to use taxpayers' funds to bail out large financial institutions
c. Agreement to create new organizations to help provide consumers clear and accurate information related to credit so that better-informed decisions can be made
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Q:
Which of the following is true about financial institutions in the United States compared to those in other countries?
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Q:
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Q:
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Q:
When issuing new securities, which of the following decisions is made jointly by a corporation and its investment banker?
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b. Deciding which investment banker to use
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Q:
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Q:
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Q:
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Q:
As compared to U.S banks, foreign banks are less regulated and have fewer restrictions concerning the types of business activities they can pursue. Therefore, foreign banks often engage in numerous aspects of multilayer financial deals.
a. True
b. False
Q:
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a. True
b. False
Q:
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Q:
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a. True
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Q:
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a. True
b. False
Q:
Dual listing of a stock leads to a decrease in the marketability of the stock.
a. True
b. False
Q:
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a. True
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Q:
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a. Securities and Exchange Commission Act
b. Wall Street Transparency and Accountability Act
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Q:
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a. True
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Q:
The Securities and Exchange Commission (SEC) was created to develop and approve a set of common international accounting rules.
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a. True
b. False
Q:
All firms that are publicly traded in the United States will be required to adopt the _____ in the near future.
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c. Governmental Accounting Standards Principles (GASP)
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Q:
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a. The transactions will have no effect on the current ratios.
b. The current ratios of both firms will be increased.
c. The current ratios of both firms will be decreased.
d. Only Emerald Corporation's current ratio will be increased.
e. Only Ruby Company's current ratio will be increased.
Q:
Which of the following statements is true regarding debt ratios?
a. Firms with relatively low debt ratios have higher expected returns when business is good.
b. Firms with relatively low debt ratios are exposed to more risk compared to firms with relatively high debt ratios.
c. Firms with relatively high debt ratios have higher expected returns when business is bad.
d. Firms with relatively high debt ratios have higher expected returns when business is good.
e. Firms with relatively low debt ratios have higher expected returns when business is poor.