Which of the following is FALSE about the payback period?
A) It is used as an informal measure of project risk.
B) It is evaluated by choosing an arbitrary cut-off date.
C) It rejects projects whose payback period is shorter than the cut-off period.
D) It disregards the time and risk value of money.
Correct Answer:
Verified
Q21: Which of the following ignores late cash
Q21: Suppose the Canadian Space Agency has two
Q22: Which of the following is a DCF
Q23: The net present value method is preferred
Q25: The NPV rule is preferred to the
Q28: Suppose the Canadian Space Agency has two
Q30: You are the CFO of a major,
Q31: Suppose the Canadian Space Agency has two
Q35: If projects Mars and Venus are mutually
Q37: What is the major assumption in the
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