The "payback method" has the following advantages:
A) easy to understand,emphasis on liquidity,considers all cash flows.
B) easy to understand,emphasis on liquidity,quick view of investment risk.
C) easy to understand,uses the time value of money concept,quick view of investment risk.
D) accepts all projects that may add value to the firm,emphasis on liquidity,quick view of investment risk.
Correct Answer:
Verified
Q40: Under capital rationing, a firm will maximize
Q56: A firm may adapt capital rationing because:
A)
Q57: The net present value method is a
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