In considering the payback period, ____. a. it considers the time value of money in determining the maximum allowable time period b. it is based on cash flows both during and after the payback period c. it gives some indication of a project’s desirability from a liquidity viewpoint d. the maximum period allowed by a firm is a specific time period based on objective criteria
In considering the payback period, ____. a. it considers the time value of money in determining the maximum allowable time period b. it is based on cash flows both during and after the payback period c. it gives some indication of a project’s desirability from a liquidity viewpoint d. the maximum period allowed by a firm is a specific time period based on objective criteria
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter12: Capital Investment Decisions
Section: Chapter Questions
Problem 2MCQ: To make a capital investment decision, a manager must a. estimate the quantity and timing of cash...
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In considering the payback period, ____.
a. it considers thetime value of money in determining the maximum allowable time periodb. it is based on cash flows both during and after the payback periodc. it gives some indication of a project’s desirability from a liquidity viewpointd. the maximum period allowed by a firm is a specific time period based on objective criteria
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