Multiple Choice
The following are disadvantages of using the payback rule except:
A) The payback rule ignores all cash flow after the cutoff date
B) The payback rule does not use the time value of money
C) The payback period is easy to calculate and use
D) The payback rule does not have the value additive property
Correct Answer:

Verified
Correct Answer:
Verified
Q56: The cost of a new machine is
Q57: Driscoll Company is considering investing in a
Q58: If an investment project (normal project) has
Q59: The survey of CFOs indicates that NPV
Q60: Which of the following investment rules has
Q61: Project X has the following cash flows:
Q65: The IRR is defined as:<br>A) The discount
Q66: What would be the weighted average profitability
Q69: The IRR rule states that firms should
Q73: Soft rationing may be used to control