The payback period rule:
A: discounts cash flows.
B: ignores initial cost.
C: always uses all possible cash flows in its calculation.
D: Both A and C.
E: None of the above.
A: discounts cash flows.
B: ignores initial cost.
C: always uses all possible cash flows in its calculation.
D: Both A and C.
E: None of the above.
举一反三
- The discounted payback period rule: A: considers the time value of money. B: discounts the cutoff point. C: ignores uncertain cash flows. D: is preferred to the NPV rule. E: None of the above.
- - Which of the following is shown in the statement of cash flows? A: Depreciation B: Cash flows from charitable donations C: Cash flows from profits of the business D: None of the above
- Which of the following statements is false （ ) A: Payback period is the time in which the initial cash outflow of an investment is expected to be recovered from the cash inflows generated by the investment. B: Payback period usually expressed in years or months. C: Annual cash flow is variable D: Payback Period = Initial Cost / Annual cash inflow
- Present value is defined as A: future cash flows discounted to the present by an appropriate discount rate. B: inverse of future cash flows. C: present cash flows compounded into the future. D: future cash flows multiplied by the factor[img=59x27]18030eb8dae724e.png[/img].
- Which of the following statements is least accurate A: The discounted payback period frequently ignores terminal values. B: The discounted payback period is generally shorter than the regular payback period. C: The discounted payback period is the time it takes for the present value of the project"s cash inflows to equal the initial cost of the investment.