Which of the following is a disadvantage of the discounted payback period method? Multiple choice question. It ignores cash flows beyond the cutoff date. It may accept negative estimated NPV investments. It is unbiased toward liquidity. It does not include the time value of money.

Which of the following is a disadvantage of the discounted payback period method? Multiple choice question. It ignores cash flows beyond the cutoff date. It may accept negative estimated NPV investments. It is unbiased toward liquidity. It does not include the time value of money.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 16MC: When using the NPV method for a particular investment decision, if the present value of all cash...

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Which of the following is a disadvantage of the discounted payback period method?

Multiple choice question.

It ignores cash flows beyond the cutoff date.

It may accept negative estimated NPV investments.

It is unbiased toward liquidity.

It does not include the time value of money.

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