?Which of the following statements is true of the payback period method of capital budgeting?
A. ?It is the simplest and oldest formal model to evaluate capital budgeting projects.
B. ?It directly accounts for the time value of money.
C. ?It considers the discounted value of cash flows beyond the payback period.
D. ?It always results in maximizing the value of the firm.
E. ?It incorporates risk into the discount rate used to solve the payback period.
Answer: A
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Saying that "this car is the ultimate driving experience" is an example of puffery.
Answer the following statement true (T) or false (F)
In the ATM model of the demand for cash
A. the amount that an individual withdraws is an exogenous variable while the probability of theft or loss is an endogenous variable. B. the amount that an individual withdraws is an endogenous variable while the probability of theft or loss is an exogenous variable. C. both the amount that an individual withdraws and the probability of loss and theft are exogenous variables. D. both the amount that an individual withdraws and the probability of loss and theft are endogenous variables.
Demands that organizational procedures comply with government regulations contributed to the need for ______.
A. dramatic organizational growth B. trained managers C. philanthropic contributions D. long-term investments in nonprofits
Which formula/function in B5 will correctly calculate the expected return of the portfolio?
a) {=SUMPRODUCT(TRANSPOSE(B2:B4),D3:F3)}
b) {=SUM(B2:B4*TRANSPOSE(D3:F3))}
c) =B2*D3+B3*E3+B4*F3
d) =MMULT(H3:J3,F2:F4)
e) All of the above