Which of these is not generally regarded as an advantage of the payback method?
A) It emphasises early cash flows which have greater certainty.
B) It emphasises liquidity.
C) It avoids having to take into account the time value of money.
D) It minimises having to forecast too far into the future.
Correct Answer:
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Q8: Martin Short, managing director of Mills Ltd,
Q9: Relevant cash flows for investment decisions are:
A)
Q10: The potential benefits forgone by rejecting one
Q11: An assessment method widely used in practice
Q12: The decision rule for the accounting rate
Q14: Which of these costs would not be
Q15: The internal rate of return is the
Q16: The investment decision method which takes the
Q17: The net present value method, unlike the
Q18: Depreciation is not included in net present
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