Author Question: Some firms use the payback period as a decision criterion or as a supplement to sophisticated ... (Read 76 times)

jhjkgdfhk · **on:** Jul 10, 2018

Some firms use the payback period as a decision criterion or as a supplement to sophisticated decision techniques, because ________.

A) it explicitly considers the time value of money
B) it can be viewed as a measure of risk exposure due to its focus on liquidity
C) the determination of the required payback period is an objectively determined criteria
D) it considers the timing of cash flows and therefore the time value of money

Question 2

An agency problem occurs when a firm selects an ineffective marketing, advertising, and PR firm to represent them.

Indicate whether the statement is true or false