How is the payback period used in capital budgeting? Multiple Choice As a measure of a project's risk To determine the amount of funds that will be required in the future O To measure the relationship between the project's return and the sompany's sost of capital

How is the payback period used in capital budgeting? Multiple Choice As a measure of a project's risk To determine the amount of funds that will be required in the future O To measure the relationship between the project's return and the sompany's sost of capital

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter11: Capital Budgeting And Risk

Section: Chapter Questions

Problem 4QTD

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

How is the payback period used in capital budgeting?
Multiple Choice
As a measure of a project's risk
To determine the amount of funds that will be required in the
future
To measure the relationship between the project's return and
the company's cost of capital
None of the above

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