Which one of the following statements about the payback method of capital budgeting is correct?
A) The payback method does NOT consider the time value of money.
B) The payback method considers cash flows after the payback has been reached.
C) The payback method uses discounted cash flow techniques.
D) The payback method will lead to the same decision as other methods of capital budgeting.
Correct Answer:
Verified
Q1: Some investment projects require that a company
Q2: Which of the following items is
Q4: An investment project that requires a present
Q5: Which of the following is associated
Q6: At what amount should the capital
Q7: By what amount does a capital
Q8: What does the payback method measure?
A) How
Q9: Which of the following is a weakness
Q10: The net present value method of capital
Q11: How are the following items used
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