Which of the following is not true about the discounted payback method?
A) Incorporates the time value of money.
B) Does not incorporate the time value of money.
C) Cash flows beyond the discounted payback period are ignored.
D) A bias toward projects with high short-run cash flows occur.
E) Companies value it because they believe long-run cash flows are unpredictable in high-growth industries.
Correct Answer:
Verified
Q24: The two DCF methods used to describe
Q25: In accrual-accounting,sales made on credit cards,or other
Q26: When computing the payback method,cash flows are
Q27: Similar to the NPV and IRR,the payback
Q28: What are the weaknesses of the payback
Q30: Managers solving capital budgeting problems typically use
Q31: The manager at Shriver Industrial,a laundry detergent
Q32: Managers prefer projects with _ payback periods.
A)equal
B)shorter
C)longer
D)infinite
E)solvent
Q33: Is the payback method affected by accrual
Q34: The _ measures the time it will
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents