Which of the following are limitations of the payback period analysis? Select one: a. can lead to erroneous results b. time value of money ignored c. benefits beyond the payback period not considered d. all points mentioned above

Which of the following are limitations of the payback period analysis? Select one: a. can lead to erroneous results b. time value of money ignored c. benefits beyond the payback period not considered d. all points mentioned above

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

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Question

Which of the following are limitations of the payback period analysis?
Select one:
a. can lead to erroneous results
b. time value of money ignored
c. benefits beyond the payback period not considered
d. all points mentioned above

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