One advantage to using the traditional payback period technique is that it provides a rough measure of a project's liquidity and risk.

Answer the following statement true (T) or false (F)


True

Payback period method provides information about both the risk and the liquidity of a project. A long payback means that (1) the investment dollars will be locked up for many years, hence the project is relatively illiquid; and (2) the project's cash flows must be forecast far out into the future, hence the project is probably quite risky. See 9-5: Use of Capital Budgeting Techniques in Practice

Business

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If the velocity of money is 8.2, the money supply is $223 billion, and real output is $958 billion, what is the price level?

A. 0.5 B. 0.8 C. 1.7 D. 1.9

Business

As indicated by Maslow's need hierarchy, people may respond favorably to

a. appeals that focus on promises of best price and the need to find a bargain. b. appeals that fulfill physiological, security, and safety needs. c. appeals that fulfill social, ego, and self-actualizing needs. d. both b and c.

Business

Which of the following is an intimidating obstacle that small businesses face?

A. Complications in technology B. High health insurance costs C. High overhead costs D. Lack of personal customer service

Business

Identify four employee appraisal feedback sources in addition to an employee's direct manager. What might be a downside of incorporating this additional information?

What will be an ideal response?

Business