Payback is considered an unsophisticated capital budgeting because it ________
A) gives explicit consideration to the timing of cash flows and therefore the time value of money
B) gives explicit consideration to risk exposure due to the use of the cost of capital as a discount rate
C) does not gives explicit consideration on the recovery of initial investment and possibility of a calamity
D) it does not explicitly consider the time value of money
D
You might also like to view...
In examining absenteeism, Sue Anne conducts a(n) ________ to estimate the financial impact.
A. utility analysis B. human resource accounting C. audit approach D. returns on employee investment E. valuation approach
In a professional services firm, the term "overhead" refers to:
a. Expenses other than professional labor that can be traced to specific jobs. b. Indirect labor costs. c. Indirect expenses incurred to support the activities of the firm. d. Indirect expenses incurred in the factory.
Prepaid Rent is a deferred expense
Indicate whether the statement is true or false
While many employers usually choose to give reason for any employment termination, Pete was fired without any given reason. This is an example of ______.
A. employment at will B. just cause doctrine C. discrimination D. marketable opportunity