What does the discounted payback method calculate?
A) the number of years required for a capital investment to generate enough discounted cash outflow to just cover the initial cash inflow
B) the number of years required for a capital investment to generate enough compounded cash inflows to just cover the initial cash outflow
C) the number of years required for a capital investment to generate enough discounted net present value of the cash inflows
D) the number of years required for a capital investment to generate enough discounted cash inflows to just cover the initial cash outflow
Correct Answer:
Verified
Q19: Which is NOT a method for calculating
Q20: What does the payback method measure?
A) the
Q21: What is a disadvantage of the payback
Q22: What formula is used to calculate the
Q23: What rough estimate is provided by the
Q25: What discount rate is used to measure
Q26: What two items does the net present
Q27: Which statement supports the use of the
Q28: What does the net present value calculation
Q29: What must the cash outflow equal when
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