Which of the following is true of the cash payback period? a.the longer the payback, the longer the estimated life of the asset b.the longer the payback, the sooner the cash spent on the investment is recovered c.the shorter the payback, the less likely the possibility of obsolescence d.All of these answers are correct.
Which of the following is true of the cash payback period? a.the longer the payback, the longer the estimated life of the asset b.the longer the payback, the sooner the cash spent on the investment is recovered c.the shorter the payback, the less likely the possibility of obsolescence d.All of these answers are correct.
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 true of the cash payback period?
a.the longer the payback, the longer the estimated life of the asset
b.the longer the payback, the sooner the cash spent on the investment is recovered
c.the shorter the payback, the less likely the possibility of obsolescence
d.All of these answers are correct.
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