Author Question: A drawback in using the payback approach to capital budgeting decisions is A) it doesn't account ... (Read 61 times)

tnt_battle · **on:** Jul 1, 2018

A drawback in using the payback approach to capital budgeting decisions is

A) it doesn't account for the time value of money.
B) it ignores cash flows beyond the payback period.
C) it doesn't adjust for differences in the stream of cash flows.
D) All of the above

Question 2

The above figure shows the market for rice in Japan. S2 represents the domestic supply curve, and S1 represents the world supply curve. A 1 per unit tariff has the same effect on producer and consumer surplus as a quota of

A) 10 units.
B) 20 units.
C) 30 units.
D) 40 units.

bigcheese9 · **Reply #1 on:** Jul 1, 2018

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