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K One disadvantage of the payback method is that it does not consider the time value of money. 4 O True False ***
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- LO3 Discuss the discounted payback rule and some of its shortcomings. LO4 Explain accounting rates of return and some of the problems with them.9. Which one of the following is the advantage of payback period method? a. Does not consider time value of money b. Simple and easy to understand c. Ignores cash beyond payback period d. None of the options1. Modes of extinguishing obligations when creditor abandons his right to collect. (PLEASE EXPLAIN YOUR ANSWER) A. Condonation B. Forfeiture C. Debt D. Damages 2. Fall after the increase reaches a certain variable amount, this is called: (PLEASE EXPLAIN YOUR ANSWER) A. Process factor B. Law of return C. Inflation D. Supply & demand 3. It is always true that the effective rate is greater than the nominal rate when m ≥ 2. (PLEASE EXPLAIN YOUR ANSWER) A. True B. False 4. (A/F, i%, N) = (A/P, i%, N) + i (PLEASE EXPLAIN YOUR ANSWER) A. True B. False
- One of the Disadvantages of the method Discounted payback period is Ignores the time value of money Select one: True FalseWhich ones identify the disadvantages of the payback rule? A. Very simple and easy to apply. B. Ignores the time value of money. C. The cutoff payback is arbitrary. All of the above. B and C of the above.10. Why do some people say that MIRR should stand for Meaningless Internal Rate of Return?
- 1._____________ is the rate at which the net present value becomes zero. a. None of the options b. Accounting rate of return c. Adjusted rate of return d. Internal rate of returnQUESTION 12 Bitcoin is not a suitable form of money because its price is highly variable. Which one of the functions of money does this violate? A. Unit of account B. Store of value C. Medium of exchangeChapter 10 Homework Questions 1. Explain why money has a time value. 2. What is the difference between simple interest and compound interest? 3. Explain the Rule of 72. 4. What is the meaning of present value (PV)? 5. What do we mean by internal rate of return (IRR)
- dont use chatgpt answer The present value of a future amount: a. will always be less than the future amount b. can be calculated precisely if the discount rate and number of periods is known c. is worth less than the future value d. both a. and b. above are trueMultinational Finance & investment Q2 d) Use a numerical example to illustrate that when there is a large change in the interest rate, the approximation error by using the duration and convexity rule is smaller than the approximation error by using the duration rule only.What L/$ rate would stop arbitrage possibilities
