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Author Question: Which of the following statements is correct? Assume that the project being considered has normal ... (Read 43 times)

connormoss

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Which of the following statements is correct? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows.

One drawback of the payback criterion for evaluating projects is that this method does not properly account for the time value of money.


The shorter a project’s payback period, the less desirable the project is normally considered to be by this criterion.


If a project’s payback is positive, then the project should be rejected because it must have a zero NPV.


If a company uses the same payback requirement to evaluate all projects, say it requires a payback of 5 years or less, then the company will tend to reject projects with relatively short lives and accept long-lived projects, and this will cause its risk to increase over time.



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Marked as best answer by connormoss on Aug 7, 2023

LynellDool

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    • i thought about discounts
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Only 39% of students answer this correctly

When you can make use of a promotion on an already discounted object, all of the greater. why not find out more



connormoss

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)


flexer1n1

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Reply 3 on: Yesterday
Gracias!

 

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