Which of the following is FALSE about the payback period?
A) It is used as an informal measure of project risk.
B) It is evaluated by choosing an arbitrary cut-off date.
C) It rejects projects whose payback period is shorter than the projects expected duration.
D) It disregards the time and risk value of money.
Correct Answer:
Verified
Q40: Consider the following graph: Q41: Suppose you have an opportunity to invest Q42: Suppose you have an opportunity to invest Q43: If the NPV of a project is Q44: The risk adjusted discount rate (RADR)is: Q46: Which of the following is FALSE about Q47: Which of the following is NOT a Q48: Suppose you have an opportunity to invest Q49: The NPV method is preferred to the Q50: Suppose you have an opportunity to invest
A)the firm's
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