LO 1 8.3 Payback Period Concerning payback: Describe how the payback period is calculated and describe the information this measure provides about a sequence of cash flows. What is the payback criterion decision rule? a. What are the problems associated with using the payback period as a means of evaluating cash flows? b. What are the advantages of using the payback period to evaluate cash flows? Are there any circumstances under which using payback might be appropriate? Explain. с.
LO 1 8.3 Payback Period Concerning payback: Describe how the payback period is calculated and describe the information this measure provides about a sequence of cash flows. What is the payback criterion decision rule? a. What are the problems associated with using the payback period as a means of evaluating cash flows? b. What are the advantages of using the payback period to evaluate cash flows? Are there any circumstances under which using payback might be appropriate? Explain. с.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:LO 1
8.3 Payback Period Concerning payback:
Describe how the payback period is calculated and describe the
information this measure provides about a sequence of cash flows.
What is the payback criterion decision rule?
a.
b.
What are the problems associated with using the payback period as a
means of evaluating cash flows?
What are the advantages of using the payback period to evaluate cash
flows? Are there any circumstances under which using payback might
be appropriate? Explain.
с.
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