You have new items in your feed. Click to view.
Question and answer
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?
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.
Questions asked by the same visitor
Would completing a post-audit of capital decisions affect your methodology going forward? Why or why not?
Weegy: Completing a pos-audit of capital decisions affect your methodology going forward because Capital budgeting decisions are among the most important decisions facing business entities. [ An important aspect of the capital budgeting process is the relationship and impact of post completion audits (PCAs) on the capital budgeting decision process. Feedback environment is an inherent aspect of a PCA. Behavioral researchers have conducted no studies we are aware of on the effect of feedback environment, as incorporated in PCAs, on capital budgeting decisions. The use of PCAs in practice is controversial since they can have both beneficial and deleterious effects on decision makers (Neale, 1993). This is not surprising since the use of different feedback environments, in general, can be either beneficial or deleterious. (Kluger and DeNisi, 1996) The effect of PCAs on the decision maker could depend on the type of feedback environment that exists for the decision maker. ] (More)
Question
Expert Answered
Asked 6/27/2013 6:56:29 AM
0 Answers/Comments
25,811,401 questions answered
Weegy Stuff
S
P
L
Points 635 [Total 1385] Ratings 3 Comments 605 Invitations 0 Offline
S
L
P
P
P
Points 439 [Total 3187] Ratings 0 Comments 439 Invitations 0 Offline
S
Points 390 [Total 811] Ratings 3 Comments 360 Invitations 0 Offline
S
P
Points 379 [Total 638] Ratings 1 Comments 369 Invitations 0 Offline
S
L
P
P
P
Points 112 [Total 3816] Ratings 0 Comments 112 Invitations 0 Offline
S
Points 88 [Total 227] Ratings 0 Comments 88 Invitations 0 Offline
S
Points 27 [Total 27] Ratings 0 Comments 27 Invitations 0 Offline
S
Points 21 [Total 71] Ratings 2 Comments 1 Invitations 0 Offline
S
Points 10 [Total 10] Ratings 1 Comments 0 Invitations 0 Offline
S
1
L
L
P
R
P
L
P
P
R
Points 8 [Total 12606] Ratings 0 Comments 8 Invitations 0 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.