Multiple Choice
A disadvantage of the payback period method of investment analysis is that:
A) it gives a crude measure of calculating risk.
B) it is easy to understand.
C) it ignores all cash inflows after the payback has occurred.
D) all of these options are considered disadvantages.
Correct Answer:

Verified
Correct Answer:
Verified
Q20: The investment decision rule for net present
Q21: Uncertainty in investment decisions is the unmeasurable
Q22: Discounted cash flow models assume that $100
Q23: Ranking projects with a higher NPV above
Q24: An advantage of the payback period method
Q26: Risk in finance:<br>A) is defined as the
Q27: A typical feature of investments is:<br>A) they
Q28: What is the reason for calculating the
Q29: When presented with the choice of multiple
Q30: The opportunity cost of making an investment