Which of the following statements regarding payback (PB) is/are true?
A) The statistic requires keeping a running subtotal of the cumulative sum of the cash flows up to the point that this sum exactly offsets the initial investment.
B) Is a capital budgeting technique that generates decision rules and associated metrics for choosing projects based on how quickly they return their initial investment.
C) both a and b are true
D) none of the above
Correct Answer:
Verified
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Q12: Which capital budgeting technique step in the
Q13: The benchmark for the profitability index (PI)
Q14: The net present value decision technique may
Q15: Which of these are sets of cash
Q17: Of the capital budgeting techniques discussed, which
Q18: All capital budgeting techniques
A) render the same
Q19: Rate-based statistics represent summary cash flows, and
Q20: Which of the following is a technique
Q21: Compute the MIRR for Project Y
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