Question
1.Which of the following represents a potential drawback of using the payback period calculation for capital budgeting deciions? A.A project is accepted if its payback
1.Which of the following represents a potential drawback of using the payback period calculation for capital budgeting deciions?
A.A project is accepted if its payback period is below some pre-specified threshold
B.The rule does not consider cash flows after the payback period
C.The technique can serve as a risk indicator
D.All of the above
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Survey Of Economics, Principles, Applications, And Tools
Authors: Arthur O'Sullivan, Steven M. Sheffrin, Stephen J. Perez
5th Edition
0132556073, 978-0132556071
