The discounted payback rule could reject good long-term projects and can easily mis-rank competing projects. Based on the discounted payback calculation, give reasons why this method can lead to nonsensical decisions.

The discounted payback rule could reject good long-term projects and can easily mis-rank competing projects. Based on the discounted payback calculation, give reasons why this method can lead to nonsensical decisions.

Accounting Information Systems

10th Edition

ISBN:9781337619202

Author:Hall, James A.

Publisher:Hall, James A.

Chapter13: Systems Development And Program Change Activities

Section: Chapter Questions

Problem 10DQ: Intangible benefits are usually extremely difficult to quantify accurately. Some designers argue...

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A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

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