A drawback in using the payback approach to capital budgeting decisions is
A) it doesn't account for the time value of money.
B) it ignores cash flows beyond the payback period.
C) it doesn't adjust for differences in the stream of cash flows.
D) All of the above
D
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If supply is elastic, the supply curve is relatively ________, and if demand is elastic, the demand curve is relatively ________
A) flat; flat B) flat; steep C) steep; flat D) steep; steep
A risk neutral individual
a. Values a lottery at more than its expected value b. Values a lottery at less than its expected value c. Values a lottery at its expected level d. Tends to play a lot of lotteries
Along a straight-line demand curve, elasticity:
A. rises as price rises. B. declines as price rises. C. is always zero. D. is equal to slope.
A particularly severe or protracted recession is called a(n):
A. peak. B. expansion. C. boom. D. depression.