Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter12: Capital Investment Decisions
Section: Chapter Questions
Problem 16MCQ: Using IRR, a project is rejected if the IRR a. is equal to the required rate of return. b. is less...
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Which of the following is correct?
• the shorter a projects payback period, the less desirable the project is normally considered to be by this criterion
• one drawback of the payback criterion is that this method does not take account of cash flows beyond the payback period.
• if a projects payback is postitive, then the project should be accepted because it must have a positive
• the regular payback ignores cash flows beyond the payback period, but the discounted payback method overcomes this problem
•one drawback of the discounted payback is that this method does not consider the
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