Why is it believed that Japanese companies prefer the payback period over the discounted cash flow methods for evaluating capital investment alternatives?
A) It is consistent with their corporate strategy of investing in new technology.
B) Japanese companies compete using very short product life cycles.
C) Cash flows over a long period of time are difficult to predict with much accuracy.
D) All of the above
Correct Answer:
Verified
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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
Q15: What is the major limitation of using
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
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