A: Payback period is the time in which the initial cash outflow of an investment is expected to be recovered from the cash inflows generated by the investment.
B: Payback period usually expressed in years or months.
C: Annual cash flow is variable
D: Payback Period = Initial Cost / Annual cash inflow
举一反三
- Which of the following statements is least accurate A: The discounted payback period frequently ignores terminal values. B: The discounted payback period is generally shorter than the regular payback period. C: The discounted payback period is the time it takes for the present value of the project"s cash inflows to equal the initial cost of the investment.
- Internal Rate of Return (IRR) is the discount rate which yields a zero ( ) A: Discounted Cash Flow B: Annual cash flow C: Payback period D: Net Present Value
- When ( ) equals zero, the discount rate is the internal rate of return. A: Discounted Cash Flow B: Annual cash flow C: Payback period D: Net Present Value
- The payback period rule: A: discounts cash flows. B: ignores initial cost. C: always uses all possible cash flows in its calculation. D: Both A and C. E: None of the above.
- The cash flow statement divides the cash flow of an enterprise in a<br/>certain period into three categories, they are _____. A: Cash flow from operating activities B: Cash flow from investment<br/>activities C: Cash flow from liability activities D: Cash flow from financing<br/>activities<br/>The
内容
- 0
The cost of a new machine is $250,000. The machine has a five-year life and no salvage value. If the cash flow each year is equal to 25 percent of the cost of the machine, calculate the payback period for the project. A: 2.0 years B: 2.5 years C: 3.0 years D: 4.0 years
- 1
The so-called net cash flow is the difference the inflow of cash flow minus the outflow of cash flow at a certain time point.
- 2
Which of the following statement is not true? A: The initial investment in working capital is a cash outflow at the ending of the project for items such as inventories B: Working capital is recaptured at the end of the project when working capital is no longer required C: Depreciation is not a current cash outflow. D: Discounted cash flow methods automatically provide for a return of the original investment, thereby making a deduction for depreciation unnecessary
- 3
Which financial statement reports the amounts of cash that the firm generated and distributed during a particular time period?
- 4
What is the payback if the initial investment is $60,000 and the cash flows are? ( )Year 1$20,000Year 2$25,000Year 3$30,000Year 4$10,000Year 5$5,000 A: 1.75 years B: 2.25 years C: 2.50 years D: 2.45 years