Which of these is a disadvantage of the payback method of investment evaluation?
A) It disregards the time value of money.
B) It disregards the post payback period cash flows.
C) It is based on cash flows.
D) Both A and B.
Correct Answer:
Verified
Q1: It is important to get investment decisions
Q5: Which method for appraising investments is regarded
Q9: Martin Short,Managing Director of Mills Ltd,has received
Q10: The time value of money is an
Q13: An assessment method widely used in practice
Q14: The decision rule for the accounting rate
Q15: To calculate the Accounting Rate of Return,
Q16: Bev is considering purchasing a new button
Q16: The decision rule for the payback method
Q17: The potential benefits forgone by rejecting one
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