The payback capital budgeting technique considers

$\begin{array}{cc} \text {Cash flows over entire life of project}&
\text {Time value of money}\\end{array}$
A.$\begin{array}{cc}
&&&&&&\text { No } &&&&&&&&&&&& \text {No } &\\end{array}$
B.$\begin{array}{cc}&&&&&&\text { No} &&&&&&&&&&&&\text { Yes } &\\end{array}$
C.$\begin{array}{cc}&&&&&&\text { Yes } &&&&&&&&&&& \text { Yes }\\end{array}$
D. $\begin{array}{cc} &&&&&&\text { Yes}&&&&&&&&&&&\text { No } \
\end{array}$

A)Option A
B)Option B
C)Option C
D)Option D

Question

The payback capital budgeting technique considers

$\begin{array}{cc} \text {Cash flows over entire life of project}&
 \text {Time value of money}\\end{array}$
A.$\begin{array}{cc}
  &&&&&&\text { No } &&&&&&&&&&&& \text {No  } &\\end{array}$
 B.$\begin{array}{cc}&&&&&&\text {  No} &&&&&&&&&&&&\text { Yes } &\\end{array}$
C.$\begin{array}{cc}&&&&&&\text { Yes } &&&&&&&&&&& \text { Yes }\\end{array}$
D. $\begin{array}{cc} &&&&&&\text { Yes}&&&&&&&&&&&\text { No } \
\end{array}$

A)Option A
B)Option B
C)Option C
D)Option D

Quizplus · Accepted Answer

The payback method focuses on the time it takes for a project to return its initial investment, not considering cash flows over the entire life of the project beyond the payback period nor the time value of money.

The Payback Capital Budgeting Technique Considers Cash flows over entire life of projectTime value of money\begin{array}{cc} \text {Cash flows over entire life of project}& \text {Time value of money}\\\end{array}Cash flows over entire life of project​Time value of money​

The Payback Capital Budgeting Technique Considers $\begin{array}{cc} \text {Cash flows over entire life of project}& \text {Time value of money}\\\end{array}$