Define Concept about these topics 1.Payback method 2.Discounted payback method 3.Net present value 4.Internal rate of return 5.Profitability Index 6.MIRR

Q: The internal rate of return (IRR) is The same thing as the cost of capital. The discount rate that…

A: IRR is the internal rate of return. It is the rate at which net present value is equal to zero.…

Q: Required: a. Determine the discounted rate of return.

A: Formula: Discount rate= Lower Rate +Lower NPV×Higher Rate-Lower RateLower NPV-Higher NPV

Q: Compare and contrast dollar returns and rates of return.

A: The returns from any investment can be calculated in terms of value (amount terms) or percentages.

Q: i. The net present value ii. The internal rate of return commend the decision to be made

A: Since in the given case the IRR is higher in machine 1 so it is to be selected.   Assumptions: We…

Q: This method evaluates the return of an investment by dividing the annual average income by the…

A: By dividing the annual average income by the average investment, return on investment is calculated.…

Q: a. what is the difference between the discount rate used for net present value and the internal rate…

A: Discount rate used for net present value is rate which investor want to earn from a project . It is…

Q: Required (a) Calculate the following values for the investment proposal. (i) Net Present Value; (ii)…

A: Investment Appraisal Techniques: There are several techniques that are used to appraise investment…

Q: Why are the net present value and the internal rate of return models superior to the payback period…

A: The net present value and internal rate of return techniques are superior to the payback method…

Q: Which payback method has a profit element?

A: Payback method is a capital budgeting technique which is used to evaluate various investment…

Q: 3) Profitability Index 4) Internal Rate of Return

A: Profitability index is a kind of capital budgeting technique that evaluates a project based on its…

Q: Charecteristics Model approach IN FINANCE, can be used in determining the discount rate in equity…

A: The discount rate in the equity valuation describes the returns in the long term given as a…

Q: Choose the correct.Determination of net present value involves: A)forecasting future profits and…

A: Net present value method: Net present value method is the method which is used to compare the…

Q: Discuss the advantages and disadvantages of using (a) payback, (b) net present value and (c )…

A: Payback Period: It refers to the period in which the project's or investment's initial cost is…

Q: To estimate the cost of equity we can use the Capital Asset Pricing Model (CAPM) or the Discount…

A: Capital asset pricing model uses the relationship between return of stock return and market return…

Q: Identify and differentiate or define the types of

A: There are mainly two types of payback analysis : 1. Payback period 2. Discounted payback period

Q: Which of the following is the most widely discussed and used method of defining the discount rate?…

A: Discount rate is a rate at which future cash flows can be discounted to their present values and…

Q: is the difference between the gross present value of the benefits of that action and the amount of…

A: Net present value is the difference between the present value of future cash inflows and cash…

Q: difference between internal rate of return and net present value?

A: Difference between internal rate of return and net present value?

Q: Do you think that these techniques can be used in situations like COVID-19 capital budgeting  1.…

A: Capital budgeting techniques are used to analyze the profitability of long term projects and…

Q: The internal rate of return is: discount rate that makes the profitability index (PI) greater than…

A: IRR and PI are important tools of capital budgeting along with NPV. IRR refers to the internal rate…

Q: Evaluate the above offers using the investment evaluation techniques mention below without using…

A: MIRR or modified internal rate of return is an important capital budgeting tool. This tool is used…

Q: CONCEPT MAPPING: Make a concept map from the given words below by arranging the word into an idea…

A: Annuity can be defined as the payments series that are made at equal intervals. It can be classified…

Q: Define each of the following terms: c. Net present value (NPV) method; internal rate of return (IRR)…

A: Net present value (NPV) is the contrast between the present value of money inflows over some…

Q: Define target payout ratio

A: SOLUTION:- A target payout ratio is a degree of the proportion of a company's profits it would want…

Q: The receivales turnover ratio is used to analyze profitability. liquidity. risk a. b. С. nventors d.…

A: Receivable Turnover Ratio = Net Credit Sales / Average Receivable

Q: Which approach to investment analysis is "best" in terms of accounting for both the timing and…

A: Capital budgeting is a tool or technique that helps to analyze the profitability of the project.…

Q: What refers to the cost of borrowing money or the amount earned by a unit principal per unit time?…

A: Solution Rate of Interest  The rate of interest is that the quantity a lender charges for the use of…

Q: .Calculate (a) net present value, (b) payback period, and (c) internal rate of return.

A: Net Present Value is the excess of present value of cash inflow to that of present value of cash…

Q: Calculate the Payback period, Accounting Rate of Return and the Net Present Value (using a 17%…

A: Given:

Q: Identify the root of the value maximization principle: O a Accounting O b. Statistics O. Economics O…

A: Answer: Concept: Value maximization principle involves concept of increasing value of the market.

Q: What is the formula for the following: Payback period. Net Present Value Internal Rate of return…

A: Accounting:   Accounting is the art of recording, classifying and summarizing in a significant…

Q: Which investment criteria answers the question: "How quickly do we recover our investment, in…

A: Pay back Period is that under which we will received / Recover the investment amount for starting…

Q: What ROI will equate the PV of Inflows and the PV of outflows? a. Internal rate of return (IRR) b.…

A: Option b is incorrect because cost of capital means the cost that is incurred by the organization on…

Q: Which of the following theories can be assessed using data that exists at one specific point in…

A: Purchasing power parity: Purchasing power parity (PPP) is a concept which means that exchange rates…

Q: Forward P/E = Market capitalization/ forecasted income

A: There are two types of P/E ratios 1) Trailing P/E ratio 2) Forward P/E ratio   Trailing P/E ratio…

Q: What is the financial meaning of each parameters and variables of the Arbitrage Pricing Theory model

A: The question is based on the concept of Arbitrage Pricing Theory mode (APT). APT is consider  a…

Q: Which figure of merit provides an interest rate at which the present value of the future cash flows…

A: IRR It is a rate at which the amount of investment equals to PV of the future CF. It is a…

Q: Calculate the market value ratio

A:

Q: 1. Write the payoff and profit equation, draw the payoff and profit diagrams of the following…

A: Forward Contracts: A forward contract is an agreement between two parties to buy or sell a commodity…

Q: What is a “required rate of return”? Why is it called the “cost ofmoney” or the “price of money”?

A: The required rate of return can be calculated by two methods, 1) Gordan's growth model  Gordan's…

Q: Illustrate the concept of present-worth analysis based on cash flowequivalence along with the…

A: The concept of present-worth analysis based on cash flow equivalence along with the payback period.…

Q: Which method does not consider the time value of money? Choose the correct. A. Net present value…

A: Net Present Value or NPV is a technique which determines the net present value of the project and it…

Q: D. Question: To estimate the cost of equity we can use the Capital Asset Pricing Model (CAPM) or the…

A: Capm estimates cost of equity with based on relationship of return of market and return of stock and…