What is the major limitation of using the payback period as a tool in capital budgeting?
A) It is difficult to calculate without a computer.
B) It favors large investments.
C) It ignores the time value of money.
D) It does not consider cash flows.
Correct Answer:
Verified
Q10: What term is used to describe the
Q11: The process of identifying, evaluating, and selecting
Q12: How is the payback period used in
Q13: A plan for next year expressed in
Q14: Why is it believed that Japanese companies
Q16: What discount rate should be used for
Q17: Which capital budgeting technique recognizes the time
Q18: What is a capital investment?
A) Using money
Q19: Conceptually, what is the internal rate of
Q20: Which of the following is NOT part
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