Major weaknesses of the payback method do NOT include which of the following?
A) It does not measure profitability.
B) It ignores the time value of money.
C) It ignores cash flows beyond the payback period.
D) It cannot be used as a rough estimate of the riskiness of a project.
Correct Answer:
Verified
Q116: Lorenzo Company is considering the purchase
Q117: U.S.corporations are required to use the same
Q118: The present value of tax savings from
Q119: Christina Company will purchase a van for
Q120: Stanley Company has obtained the following
Q122: Which of the following statements about the
Q123: A disadvantage of the accounting rate of
Q124: A plant asset of $180,000 is expected
Q125: The time it will take to recoup
Q126: Projects that recoup their investment quickly may
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