Using the Payback Method to Evaluate Capital Projects Is a Simpler

question 157

Essay

Using the payback method to evaluate capital projects is a simpler method than either net present value or internal rate of return.Answer the following questions relating to the payback method.
a.What does the payback period measure?
b.How is the payback period calculated when the annual cash flows are equal?
c.How is the payback period calculated when the annual cash flows are not equal?
Unit 9-4,

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Definitions:

Nucleophilicity

A property of chemical species that reflects their tendency or ability to donate an electron pair to an electrophile to form a chemical bond.

Basicity

A measure of the ability of a compound to accept protons.

Nucleophilicity

A measure of a molecule or ion's strength as a nucleophile, or its ability to donate an electron pair to an electrophile.

Basicity

A measure of a substance's ability to donate electrons or accept protons, commonly applied in the context of acids and bases.