Which one of the following is a limitation of the payback technique of capital investment appraisal?
A) It is simple and easy to calculate.
B) Considers the time value of money.
C) It is based on accounting profits.
D) Fails to take into account the magnitude of net cash inflows after the initial investment cost has been recovered.
Correct Answer:
Verified
Q28: Dixon Limited has undertaken various capital investment
Q29: The directors of TZA Limited are evaluating
Q30: VCV Limited is planning a capital investment.
Q31: VKU Limited is planning a capital investment.
Q32: XTA Limited is planning a capital investment.
Q34: Which one of the following is not
Q35: Which one of the following does not
Q36: Which one of the following is a
Q37: Interest rates are 10%. What is the
Q38: £10,000 today = £13,108 in 4 years'
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