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Which of the following decision model takes into account of all the cash flows of a project. Payback period Discounted payback period Profitability index None
Which of the following decision model takes into account of all the cash flows of a project.
Payback period | ||
Discounted payback period | ||
Profitability index | ||
None |
The discount rate that is used for calculating the present values of a project's cash flows is the rate of return on other investments, which have lower risk than that of the project.
True
False
Variance of an investment's returns shows the exact percentage of the investment's risk.
True
False
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