Among the reasons many firms DON'T use the payback period as a guideline in capital investment decisions are all of the following EXCEPT:
A) it gives consideration to the timing of cash flows.
B) it uses an appropriate measure of risk.
C) it recognizes cash flows which occur after the payback period.
D) it is easy to calculate.
Correct Answer:
Verified
Q52: Your company is planning to open a
Q53: If the _ is greater than or
Q54: The underlying cause of ranking conflicts between
Q55: Perhaps the greatest disadvantage of using the
Q56: An insurance firm agrees to pay you
Q58: Some firms use the payback period as
Q59: What is the IRR for a project
Q60: In comparing the internal rate of return
Q61: The Barby Division at Mattel Toys is
Q62: As the capital budgeting director for Chapel
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