Which of the
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
period.
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
period.
举一反三
- 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.
- 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.
- 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
- 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
- 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.