This topic contains a solution. Click here to go to the answer

Author Question: Which of the following statements is correct? Assume that the project being considered has normal ... (Read 67 times)

connormoss

  • Full Member
  • ***
  • Posts: 130
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.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by connormoss on Aug 7, 2023

LynellDool

  • Full Member
  • ***
  • Posts: 165
    • 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.
Answer Preview
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

  • Member
  • Posts: 130
Reply 2 on: Aug 7, 2023
Thanks for the timely response, appreciate it


raenoj

  • Member
  • Posts: 340
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Did you know?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

For a complete list of videos, visit our video library