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Which of the following is the main advantage of the payback rule: It is simple and intuitive to use Adjustment for uncertainty of early cash
Which of the following is the main advantage of the payback rule: It is simple and intuitive to use Adjustment for uncertainty of early cash flows Adjust for inflation discount cash flows The cost of a new machine is $300,000. The machine has a 3-year life and no salvage value. If the cash flow each year is equal to 40% of the cost of the machine, calculate the payback period for the project: 2.5 years 2 years Cannot be determined because of insufficient data 3 years
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