Which ones identify the disadvantages of the payback rule? A. Very simple and easy to apply. B. Ignores the time value of money. C. The cutoff payback is arbitrary. All of the above. Band C of the above.
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- One of the advantages of Internal Rate of Return is: O a. It gives the closest rate of return O b. None of these c. Calculations are complex in nature O d. It ignores the reinvestment potentialThe payback period method has been criticized for not taking the time value of money intoaccount. Could this limitation be overcome? If so, would this method then be preferable to theNPV method?Which of the following is a disadvantage of the average rate of return method? a. fails to consider the time value of money b. includes the amount of income earned over the entire life of the proposal c. emphasizes accounting income d. difficult to use
- One of the Disadvantages of the method Discounted payback period is Ignores the time value of money Select one: True FalseList the advantages and disadvantages of the payback method.The discounted payback rule will give the same result as the NPV rule when the cut-off rule is infinite the discount rate is the same they will never give the same result the cut-off rule is zero