Notice: Payments for answers will end 4/10/2017. Click for more info.
You have new items in your feed. Click to view.
Question and answer
Q: Which of the four methods of evaluating capital projects would you prefer to use, and why? How would the type of capital investment decision you were making affect your choice of method?
A: Payback. This calculates the number of years it will take to recoup the cash spent on a project. A criticism of payback is that the time value of money is not considered and the cash flows over the entire life of the project are not considered.
Get an answer
Original conversation
User: Which of the four methods of evaluating capital projects would you prefer to use, and why? How would the type of capital investment decision you were making affect your choice of method?

Weegy: Payback. This calculates the number of years it will take to recoup the cash spent on a project. A criticism of payback is that the time value of money is not considered and the cash flows over the entire life of the project are not considered.
Expert answered|cmmyg|Points 82|

User: In your own words, articulate the pros and cons of each of the four methods of evaluating capital projects.

Weegy: Payback. This calculates the number of years it will take to recoup the cash spent on a project. [ A criticism of payback is that the time value of money is not considered and the cash flows over the entire life of the project are not considered. Accounting Rate of Return or Return on Investment. This approach looks at the increase in accounting profit compared to the increased investment. This approach also ignores the time value of money. Internal rate of return. This method does consider the time value of money and looks at the cash flows over the entire life of the project. The technique computes the rate that will discount the future cash flows to be equal to the cash outlay for the project. Net present value. This method discounts the project’s future cash flows by a predetermined rate, such as the targeted or needed rate. If the cash flows discounted by the targeted rate exceed the cash investment, the project is accepted. That is, the project provides the targeted return or more. ]
Expert answered|cmmyg|Points 82|

User: Would completing a post-audit of capital decisions affect your methodology going forward? Why or why not?

Question
Asked 6/27/2013 6:33:34 AM
0 Answers/Comments
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
26,656,438 questions answered
Popular Conversations
What is 3x3 11x2 26x 30 divided by x 5?
Weegy: 3X3 = 9 11X2 = 22 26X30 = 780
2/20/2018 7:03:35 PM| 9 Answers
Which country was first to Settle in the Louisiana area?
Weegy: The first country to settle in the Louisiana area was France.
2/22/2018 10:08:51 PM| 3 Answers
Solve this equation: 2s + s + 12 = 132. A. s = 120 B. s = –30 C. s = ...
Weegy: 2s + s + 12 = 132 User: 2s + s + 12 = 132. Weegy: 2s + s + 12 = 132 User: . Solve the inequality: 12p + 7 > ...
2/24/2018 3:39:46 AM| 3 Answers
Solve for x. 4x + 3 < 9
2/18/2018 11:19:06 AM| 3 Answers
Simplify and solve this equation for q: 3q + 5 + 2q – 5 = 65. ...
Weegy: 3q + 5 + 2q - 5 = 65 User: Solve the following inequality: 38 4 B. x 28 Weegy: 38 User: Use an ...
2/19/2018 12:26:32 AM| 3 Answers
What is equilibrium?
Weegy: Equilibrium is the state in which market supply and demand balance each other and, as a result, prices become ...
2/21/2018 9:09:11 PM| 3 Answers
Write 10 5/12 as an equivalent improper fraction.
Weegy: 10 5/12 in improper fraction form is 125/12. User: Subtract: 8 – 4 1/2
2/15/2018 12:27:39 AM| 2 Answers
In the decimal number .675, the 7 holds what place value? A. ...
Weegy: In the decimal number .675, the 7 holds - Hundredths place. User: Find the value of 8.3 × 24.2 × 0.03. ...
2/22/2018 2:04:24 PM| 2 Answers
Find the difference between the product of 21.33 and 2.04 and the sum ...
Weegy: (21.33 * 2.04) - (1.115 + 3.18 + 22.0613 + 12.2384) User: Which is another way to check the sum of 52 + 23 + ...
2/22/2018 8:00:08 PM| 2 Answers
Which country was first to Explore Louisiana? France Spain England
Weegy: France was the first country to explore Louisiana.
2/22/2018 10:05:40 PM| 2 Answers
Weegy Stuff
S
L
Points 404 [Total 407] Ratings 13 Comments 244 Invitations 3 Offline
S
Points 89 [Total 89] Ratings 0 Comments 19 Invitations 7 Offline
S
P
L
P
P
Points 77 [Total 270] Ratings 0 Comments 77 Invitations 0 Offline
S
1
L
L
P
R
P
L
P
P
R
Points 73 [Total 12684] Ratings 0 Comments 63 Invitations 1 Offline
S
P
Points 41 [Total 85] Ratings 1 Comments 31 Invitations 0 Offline
S
P
Points 16 [Total 33] Ratings 0 Comments 16 Invitations 0 Offline
S
Points 11 [Total 11] Ratings 1 Comments 1 Invitations 0 Offline
S
Points 10 [Total 10] Ratings 0 Comments 0 Invitations 1 Offline
S
Points 10 [Total 11] Ratings 1 Comments 0 Invitations 0 Offline
S
Points 10 [Total 10] Ratings 1 Comments 0 Invitations 0 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.