Which of the following statements about payback periods is false? It measures the amount of time needed for a project to recover its initial investment. O It ignores post-payback cash-flows. It ignores the timing/time-value of the cash-flows.
Which of the following statements about payback periods is false? It measures the amount of time needed for a project to recover its initial investment. O It ignores post-payback cash-flows. It ignores the timing/time-value of the cash-flows.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 20E
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![Which of the following statements about payback periods is false?
It measures the amount of time needed for a project to recover its initial
investment.
O It ignores post-payback cash-flows.
O It ignores the timing/time-value of the cash-flows.
O Any project with a payback period less than two years will increase shareholder
wealth.
O It is rather easy to calculate.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2c395d93-07fd-42b2-affa-829a4c41ec10%2F3d28b913-605e-4cd5-8996-088fb744c945%2Fgz66339_processed.png&w=3840&q=75)
Transcribed Image Text:Which of the following statements about payback periods is false?
It measures the amount of time needed for a project to recover its initial
investment.
O It ignores post-payback cash-flows.
O It ignores the timing/time-value of the cash-flows.
O Any project with a payback period less than two years will increase shareholder
wealth.
O It is rather easy to calculate.
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