Which of the following is a disadvantage of payback period approach?
A) It does not examine the size of the initial outlay.
B) It does not use net profits as a measure of return.
C) It does not explicitly consider the time value of money.
D) It does not take into account an unconventional cash flow pattern.
C
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Which of the following is an activity that causes changes in the amount of a cost pool?
a. Cost element b. Cost function c. Cost driver d. Cost allocation
Jymo Company has a tax rate of 25 percent and is considering a capital project that will make the following annual contribution to operating income: Cash revenues $250,000 Cash expenses (150,000) Depreciation (75,000) Operating income before income taxes $25,000 Income taxes (6,250) Operating income $18,750 Using the income adjustment procedure, net cash inflows are
A) $(93,750). B) $12,500. C) $93,750. D) $100,000.
When cost relationships are linear, total variable prime costs will vary in proportion to changes in
a. direct labor hours. b. total material cost. c. total overhead cost. d. production volume.
Concerned that her new office building would not meet new environmental standards, Sarah made large contributions to several prominent politicians in exchange for being permitted to continue with construction on the building. It appears that Sarah engaged in ______.
A. discriminatory labor practices B. corrupt payments C. discriminatory labor practices D. unethical marketing practices