Multiple Choice
The payback method has all of the following advantages EXCEPT:
A) It considers the time value of money
B) It determines a firm's financial exposure
C) It is easy to calculate
D) It determines if the project under consideration will be able to replace the start-up costs.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q38: The profitability index is the ratio of
Q58: In working with capital budgeting, what does
Q92: Using the profitability index, which of
Q94: If the net present value of an
Q95: Would you invest in a project that
Q96: The advantages of the payback approach include
Q98: Calculate the net present value for
Q99: The internal rate of return method assumes
Q100: The payback period can be considered justified
Q102: When two or more normal projects are