Which of the following is a problem with using discounted payback period for capital budgeting decisions arbitrary cutoff choice bias against short term projects in favor of long term projects time value of money conceptual violation
Which of the following is a problem with using discounted payback period for capital budgeting decisions arbitrary cutoff choice bias against short term projects in favor of long term projects time value of money conceptual violation
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter13: Capital Budgeting: Estimating Cash Flows And Analyzing Risk
Section: Chapter Questions
Problem 4Q
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Which of the following is a problem with using discounted payback period for capital budgeting decisions
arbitrary cutoff choice
bias against short term projects in favor of long term projects
time value of money conceptual violation
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