The payback period is not an appropriate criterion for evaluating direct investment projects because:
A) it ignores the time value of money.
B) it overlooks cash flows arising after the payback period.
C) it is based on profit.
D) it both ignores the time value of money and it overlooks cash flows arising after the payback period.
Correct Answer:
Verified
Q15: Political risk arises from:
A) changes in the
Q16: Tax policies affect the incentive to engage
Q17: What was not a determinant of FDI
Q18: The reasons why multinational firms engage in
Q19: The accounting rate of return is not
Q21: Which of the following is an example
Q22: FDI is perceived by the host countries
Q23: Which of the following factors are important
Q24: International capital budgeting is:
A) less complex than
Q25: Firms, which have FDI projects in high-inflation
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