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

1) The payback method considers cash flows that occur both during and after the payback period.
2) The payback method is used only when the net cash inflows from a capital investment are the same for each period.
3) Managers generally use payback as the sole method for deciding whether to invest in an asset.
4) The payback method uses discounted cash flows to make investment decisions.
5) Both the payback and the accounting rate of return methods focus on cash flows that an asset generates.


1) FALSE
2) FALSE
3) FALSE
4) FALSE
5) FALSE

Business

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