Multiple Choice
Which three of the following are drawbacks of payback?
A) Cash flows beyond the payback cut- off are ignored.
B) The cut- off point is arbitrarily selected: it has no theoretical base.
C) It is difficult to calculate and interpret.
D) It fails to allow for the time value of money.
Correct Answer:

Verified
Correct Answer:
Verified
Q16: The measures the amount of time it
Q17: Which of the following methods is most
Q18: Which of the following reasons is most
Q19: Which of the following is the most
Q20: Which of the following best reflects practice
Q24: Which of the following statements accurately relates
Q25: Which three of the following accurately relate
Q26: What term is used for the ratio
Q67: For conventional projects, both NPV and IRR
Q123: Projects having higher cash inflows in the