According to the capital budgeting surveys cited in the text, in general, most ﬁnancial managers of large Canadian ﬁrms:
A) Prefer to rely exclusively on payback analysis to evaluate projects.
B) Use the AAR as their primary method of evaluating capital budgeting projects.
C) Who use payback analysis use it only in conjunction with some other type of analysis.
D) Prefer to use NPV or IRR to analyze their investment projects.
E) Make use of payback analysis more heavily than discounted cash ﬂow methods.

Question

Quizplus · Accepted Answer

Most financial managers who use payback analysis do so in conjunction with other methods, as it does not account for the time value of money or risk.

According to the Capital Budgeting Surveys Cited in the Text