Business

Business, 03.09.2019 21:30, funnybugy16

Amajor disadvantage of the payback period method is that it select one: a. is useless as a risk indicator. b. ignores cash flows beyond the payback period. c. does not directly account for the time value of money. d. all of the answers above are correct. e. only answers b and c are correct.

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Business, 18.10.2019 18:30, ethangorrell67

Which of the following statements indicate a disadvantage of using the discounted payback period for capital budgeting decisions? choose all that apply. a. the discounted payback period does not take the project’s entire life into account. b. the discounted payback period does not take the time value of money into account. c. the discounted payback period is calculated using net income instead of cash flows.

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Business, 08.11.2019 01:31, coolestkid2401

Which of the following statements is correct? a. one drawback of the regular payback is that this method does not take account of cash flows beyond the payback period.b. if a project's payback is positive, then the project should be accepted because it must have a positive npv.c. the regular payback ignores cash flows beyond the payback period, but the discounted payback method overcomes this problem.d. one drawback of the discounted payback is that this method does not consider the time value of money, while the regular payback overcomes this drawback.e. the shorter a project's payback period, the less desirable the project is normally considered to be by this criterion.

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Business, 08.11.2019 01:31, taibamah

Which of the following statements is correct? assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows.a. one drawback of the regular payback for evaluating projects is that this method does not properly account for the time value of money.b. if a project's payback is positive, then the project should be rejected because it must have a negative npv.c. the regular payback ignores cash flows beyond the payback period, but the discounted payback method overcomes this problem.d. if a company uses the same payback requirement to evaluate all projects, say it requires a payback of 4 years or less, then the company will tend to reject projects with relatively short lives and accept long-lived projects, and this will cause its risk to increase over time.e. the longer a project's payback period, the more desirable the project is normally considered to be by this criterion.

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Business, 08.11.2019 01:31, jasontbyrer

Which of the following statements is correct? a. the discounted payback method recognizes all cash flows over a project's life, and it also adjusts these cash flows to account for the time value of money.b. the regular payback method was, years ago, widely used, but virtually no companies even calculate the payback today.c. the regular payback is useful as an indicator of a project's liquidity because it gives managers an idea of how long it will take to recover the funds invested in a project.d. the regular payback does not consider cash flows beyond the payback year, but the discounted payback overcomes this defect.e. the regular payback method recognizes all cash flows over a project's life.

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