Thank you for helping me out Chegg Tutor! Much appreciated! :)

QUESTION 17

1. A disadvantage of the payback period method of investment analysis is that:

   	a.	it ignores all cash inflows after the payback has occurred
   	b.	it gives a crude measure of calculating risk
   	c.	it is easy to understand
   	d.	it is simple to calculate
   	e.	all of these options are considered disadvantages

1 points

QUESTION 18

1. Which of the following statements regarding the Internal rate of Return (IRR) is TRUE:

   	a.	If the internal rate of return is higher than the discount rate the net present value is negative
   	b.	If the internal rate of return is the discount rate the net present value is equal to zero
   	c.	If the internal rate of return is lower than the discount rate the payback period is lower than the required payback period
   	d.	A preferred investment is the investment in which the discount rate is higher than the internal rate of return
   	e.	None of the options is correct