Under what circumstances is the investment with the shortest payback the best choice? How should managers use the payback method?
What will be an ideal response
The investment with the shortest payback is the best only if all other factors are the same. Managers should use the payback method as a screening device to eliminate investments that will take too long to recoup the initial investment.
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The three reasons why a company might choose an accelerated depreciation method are __________________________________________________, __________________________________________________, and __________________________________________________
Fill in the blank(s) with correct word
This method is an alternative to survey-based methods and takes place in a real environment. It tries to obtain actual market data after manipulating price in different markets. Identify this method
A) dollarmetric method B) conjoint analysis C) field experimental method D) delphi method
Typically, which of the following would be considered to be the most indicative of a firm's short-term debt paying ability?
a. Working capital b. Current ratio c. Acid test d. Cash ratio e. Days' sales in receivables
Answer the following statements true (T) or false (F)
Although not specifically mentioned in the most recent definition of liabilities, deferred credits continue to be part of the liability section in the balance sheet under present practices.