Which of the following is a drawback of payback period method of investment appraisal? O it is cash flow based OIt consider the time value of money it does not measure potential impact on shareholder wealth OIt is profit based

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 12MC: Which of the following does nor assign a value to a business opportunity using time-value...
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Which of the following is a drawback of payback period method of
investment appraisal?
Oit is cash flow based
OIt consider the time value of money
it does not measure potential impact on shareholder wealth
OIt is profit based
Transcribed Image Text:Which of the following is a drawback of payback period method of investment appraisal? Oit is cash flow based OIt consider the time value of money it does not measure potential impact on shareholder wealth OIt is profit based
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