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Requirements 1,2,3 Question Help E21-22 (similar to) Benson, staff analyst at Rzzis, is preparing an analysis of the three projects under consideration by Chester Rozzis,
Requirements 1,2,3
Question Help E21-22 (similar to) Benson, staff analyst at Rzzis, is preparing an analysis of the three projects under consideration by Chester Rozzis, the company's owner Rozzis Construction is analyzing its capital expenditure proposals for the purchase of equipment in the EE (Cick the icon to view the data for the three projects) year Linda Read the requirements the company's cash is limited, Rozzis thinks the payback method should be used to choose between the capital budgeting projects Requirement 1.Because a. What are the benefts and limitations of using the payback method to choose between projects? Benefits of the payback method A. Easy to understand and captures uncertainty about expected cash tows in later years of a projesct Indicates whether or not the project will earn the company's minimum required rate of return C Utices the time value of money and computes each projects unique rate of return All of the above Umitations of the payback method 0 A. Cannot be used when managements ' ??. Carnot be used for pruids with unegal required rate of reun varies trom one perniod to the next odic cash tows ais to incorporate the time value of money and does not consider a projects cash tows ator the payback period D. All of the above Step by Step Solution
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