11th Edition

ISBN: 9780077861704

Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Bradford D Jordan Professor

Publisher: McGraw-Hill Education

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Textbook Question

Chapter 9.2, Problem 9.2BCQ

Why do we say that the payback period is, in a sense, an accounting breakeven measure?

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Chapter 9.2, Problem 9.2ACQ

Chapter 9.3, Problem 9.3ACQ

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Chapter 9 Solutions

Fundamentals of Corporate Finance

Ch. 9.1 - Prob. 9.1ACQ Ch. 9.1 - Prob. 9.1BCQ Ch. 9.2 - Prob. 9.2ACQ Ch. 9.2 - Why do we say that the payback period is, in a...Ch. 9.3 - Prob. 9.3ACQ Ch. 9.3 - What advantage(s) does the discounted payback have...Ch. 9.4 - What is an average accounting rate of return...Ch. 9.4 - What are the weaknesses of the AAR rule?Ch. 9.5 - Prob. 9.5ACQ Ch. 9.5 - Is it generally true that an advantage of the IRR...

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Why do we say that the payback period is, in a sense, an accounting breakeven measure?

Solution Summary: The author explains that the payback period is a measure of accounting break-even as it ignores the time value of money.

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Chapter 9 Solutions