Need accurate answer of this financial accounting Question The payback period method_a) Considers time value of moneyb) Ignores cash flows after paybackc) Is the best capital budgeting methodd) Considers risk explicitly

Detailed explanation: • The payback period approach to capital budgeting chiefly focuses on the…

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 13MC: Which of the following discounts future cash flows to their present value at the expected rate of...

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When using the NPV method for a particular investment decision, if the present value of all cash Inflows Is greater than the present value of all cash outflows, then _______ . A. the discount rate used was too high B. the investment provides an actual rate of return greater than the discount rate C. the investment provides an actual rate of return equal to the discount rate D. the discount rate is too low
The payback period method (a) Considers time value of money (b) Ignores cash flows after payback (c) Is the best capital budgeting method (d) Considers risk explicitly
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The payback period method
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Financial accounting: the payback period method
Which capital budgeting technique defines returns in terms of income instead of cash flows? a) The payback period b) The internal rate of return technique c) The net present value technique d) The unadjusted rate of return method
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Finding the present value of future cash flows is called and finding the future value of present cash flows is called O A. analytics, tracking B. capital budgeting, short-term budgeting C. discounting, compounding D. financial ratio analysis, financial statement analysis O E. fundamental analysis, technical analysis
Which capital budgeting technique measures all expected future cash inflows and outflows as if they occurred at a single point in time? Group of answer choices a. sensitivity analysis b. accrual accounting rate-of-return method c. net present value method d. payback method
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The payback period method_ a) Considers time value of money b) Ignores cash flows after payback c) Is the best capital budgeting method d) Considers risk explicitly