edugen.wileyplus.com says: PLUSkuaie sur you donthawe ny wnuéemited Kim Heln 5 m

Question

edugen.wileyplus.com says: PLUSkuaie sur you donthawe ny wnuéemited Kim Heln 5 minutes remaining. Make sure you don't have any unsubmitted work OK Open Assignment Start Time: 03:16 PM/ Remaining: 6 min, NE RESOURCES Insight Box Concept Check 5 As a result of excess capacity, large screen TV manufacturers are selling fewer TVs than planned and are also slashing prices to stimulate demand. This will most likely result in O longer payback periods but higher net present value than anticipated. O shorter payback periods and lower net present value than anticipated. O greater internal rate of return due to potentially higher demand. O longer payback periods and lower net present value than anticipated. Question Attempts: o of 1 used SAVE FOR LATERSUBMITANS WE iective

Explanation / Answer

Answer: longer payback periods and lower net present value than anticipated.

The reduced sales volume and slashed prices will result in a lower cash inflow. As payback is calculated by dividing the investment value with the annual cash inflows, a lower cash inflow will result in increasing the payback period. Lower cash inflows will also lower the net present value.

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.