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Which of the following is an advantage of the cash payback method? Includes the cash flow over the entire life of the proposal emphasizes accounting
Which of the following is an advantage of the cash payback method? Includes the cash flow over the entire life of the proposal emphasizes accounting income takes into consideration the time value of money easy to use Assume in analyzing alternative proposals that Proposal F has a useful life of 6 years and Proposal J has a useful life of 9 years. What is one widely used method to make the net present values of the proposals comparable? Ignore the useful lives of 6 and 9 years and find an average (7 1/2 years). Ignore the fact that Proposal F has a useful life of 6 years and treat it as If It has a useful life of 9 years. ignore the useful lives of 6 and 9 years and compute the average rate of return. Adjust the life of Proposal J to a time period that.s equal to that of Proposal F by estimating a residual value at the end of year 6
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