Firms may select projects with short paybacks because
A) projects with longer paybacks may be riskier.
B) shorter paybacks may help reduce liquidity problems.
C) if the risk of obsolescence is high, the firm may want to recover the funds rapidly.
D) All of the above are correct.
Correct Answer:
Verified
Q2: Why would a company use the accounting
Q3: A firm is considering two projects
Q4: If a project has a net present
Q5: If the annual cash flows are an
Q6: A firm is evaluating a project that
Q7: What is a weakness of the payback
Q8: The time required for a project to
Q9: Future cash flows expressed in present value
Q10: A firm is evaluating a project that
Q11: The accounting rate of return is calculated
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