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Author Question: Which of the following is a reason for firms not using the payback method as a guideline in capital ... (Read 96 times)

corkyiscool3328

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on: Jul 10, 2018
Which of the following is a reason for firms not using the payback method as a guideline in capital investment decisions?
 
  A) It gives an explicit consideration to the timing of cash flows.
  B) It cannot be specified in light of the wealth maximization goal.
  C) It is a measure of risk exposure and projects the possibility of a calamity.
  D) It is easy to calculate and has intuitive appeal.

Question 2

Dividends paid to stockholders is tax deductible.
 
  Indicate whether the statement is true or false


cuttiesgirl16

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Reply #1 on: Jul 10, 2018
Answer to Question 1

B

Answer to Question 2

FALSE


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