WebbThe payback period ignores cash flows after the payback point has been reached. correct incorrect. It takes account of the time value of money. correct incorrect * not completed. Bean Ltd is considering undertaking a project, which will involve an initial outlay of £300,000. The project has the ... WebbQuestion: Which of the following is true about the payback method? None of the statements are true. It is too complicated for managers to compute and interpret. It incorporates the time value of money. It is consistent with the goal of maximizing shareholder wealth. It ignores cash flows beyond the payback period.
The Payback Method: Disadvantages of the Payback Method
Webb26 nov. 2003 · There is one problem with the payback period calculation. Unlike other methods of capital budgeting, the payback period ignores the time value of money … Webb6 okt. 2024 · What is the formula for the Payback method? In contrast to return on investment and net present value methods, the cash inflows occurring after the payback … lithonia tclc m4
Chapter 12 Financial Management Flashcards Quizlet
Webb1. The payback rule ignores all cash flows after the cutoff date. If the cutoff date is two years, the payback rule rejects project A regardless of the size of the cash inflow in year … WebbThe conventional payback period ignores the time value of money, and this concerns Cold Goose's CFO. He has now asked you to compute Delta's discounted payback period, assuming the company has a 2% cost of capital. Complete the following table and perform any... ... Answer & Explanation Solved by verified expert Webb9 apr. 2024 · B.The payback period method ignores the time value of money. C.The payback period method is more sophisticated and yields better decisions than the internal rate of return method. D.The payback period method takes into account the total stream of cash flows, which are difficult to predict. 97.Hammer Saw Tools is considering a $7,000 … lithonia tclc ho