There are several disadvantages to the payback method, among them:
A) Payback ignores the interest that is earned during the period of time the project is in place.
B) Payback emphasizes receiving money back as fast as possible for reinvestment.
C) Payback is basic to use and understand.
D) Payback can be used in conjunction with time-adjusted methods of evaluation.
Correct Answer:
Verified
Q38: In most cases, asset lives are shorter
Q39: Under MACRS depreciation, the tax life of
Q40: Under capital rationing, a firm will maximize
Q41: Investors discount the later years of a
Q42: When net present value and internal rate
Q44: Which of the following is not a
Q45: The first step in the capital budgeting
Q46: The dollar amount of losses incurred when
Q47: A tax loss on the sale of
Q48: Capital budgeting is primarily concerned with
A) capital
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