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.
举一反三
- 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
- Internal Rate of Return (IRR) is the discount rate which yields a zero ( ) A: Discounted Cash Flow B: Annual cash flow C: Payback period D: Net Present Value
- 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.
- What is the Discounted Payback Period? A: 2.0 B: 3.88 C: 2.9 D: 3.52
- When ( ) equals zero, the discount rate is the internal rate of return. A: Discounted Cash Flow B: Annual cash flow C: Payback period D: Net Present Value
内容
- 0
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.
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What is the Payback Period? A: 2.5 B: 2 C: 3.1 D: 2.9
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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
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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.
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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.