The discounted payback method Multiple Choice О discounts a project's initial cost. is simpler and more reliable than the payback period. о is as reliable as NPV because both methods use discounted cash flow. О uses an arbitrary cutoff period. о ignores a project's initial costs.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
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Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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The discounted payback method
Multiple Choice
О
discounts a project's initial cost.
is simpler and more reliable than the payback period.
о
is as reliable as NPV because both methods use discounted cash flow.
О
uses an arbitrary cutoff period.
о
ignores a project's initial costs.
Transcribed Image Text:The discounted payback method Multiple Choice О discounts a project's initial cost. is simpler and more reliable than the payback period. о is as reliable as NPV because both methods use discounted cash flow. О uses an arbitrary cutoff period. о ignores a project's initial costs.
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