Author Question: All of the following are criticisms of the payback period criterion EXCEPT A) it deals with ... (Read 60 times)

gbarreiro · **on:** Jul 10, 2018

All of the following are criticisms of the payback period criterion EXCEPT

A) it deals with accounting profits as opposed to cash flows.
B) cash flows occurring after the payback are ignored.
C) time value of money is not accounted for.
D) None of the above; they are all criticisms of the payback period criteria.

Question 2

In general, interest rates on short-term debt are higher than interest rates on long-term debt
because the borrower has less time to repay the loans, and hence the risk to the lender is higher.

Indicate whether the statement is true or false