Question
Which of the following statements about comparing capital budget techniques is (are) correct? I. The payback period is easy to understand and helps the firm
Which of the following statements about comparing capital budget techniques is (are) correct?
I. The payback period is easy to understand and helps the firm identify how long it will be unable to use the initial investment for other projects.
II. Mutually exclusive projects allow a firm to do other like projects (mutually exclusive) simultaneously as long as the budget constraints are met.
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| a. | Only statement I is correct. |
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| b. | Only statement II is correct. |
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| c. | Both statements I and II are correct. |
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| d. | Neither statement I nor II is correct. |
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Foundations Of Financial Markets And Institutions
Authors: Frank J. Fabozzi, Franco Modigliani, Michael G. Ferri
2nd Edition
0136860567, 9780136860563
