The following are disadvantages of using the payback rule except the rule
A: ignores all cash flow after the cut-off date.
B: does not use the time value of money.
C: is easy to calculate and use.
D: does not have the value additivity property.
A: ignores all cash flow after the cut-off date.
B: does not use the time value of money.
C: is easy to calculate and use.
D: does not have the value additivity property.
举一反三
- Which of the<br/>following is NOT a limitation of the payback rule? A: It does not consider the time value of money. B: Lacks a decision criterion that is economically based. C: It is difficult to calculate. D: It does not consider cash flows occurring after the payback<br/>period.
- 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.
- The payback period rule A: varies the cut-off point with the interest rate. B: determines a cut-off point so that all projects accepted by the NPV rule will be accepted by the payback period rule. C: requires an arbitrary choice of a cut-off point. D: varies the cut-off point with the interest rate and requires an arbitrary choice of a cut-off point.
- The payback period method does not ignore the time value of money投资回收期方法不会忽略金钱的时间价值
- 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.