# Basic Capital Budgeting

Not what you're looking for?

1) Which are the following are correct:

--one drawback of the discounted payback is that this method does not consider the time value of money, while the regular payback overcomes this drawback.

--one drawback of the payback criterion is that this method does not take account of cash flows beyond the payback period.

--The regular payback ignores cash flows beyond the payback period, but the discounted payback method overcomes this problem.

----The shorter a project's payback period, the less desirable the project is normally considered to be this criterion.

---If a project's payback is positive, the the project should be accepted because it must have a positive NPV.

--The payback method is generally regarded by academics as being the best single method for evaluating capital budgeting projects.

--The discounted payback method is generally regarded by academics as being the best single method for evaluating capital budgeting projects.

--The net present value method (NPV) is generally regarded by academics as being the best single method for evaluating capital budgeting projects.

--The internal rate of return method (IRR) is generally regarded by academics as being the best single method for evaluating capital budgeting projects.

--The modified internal rate of return method (MIRR) is generally regarded by academics as being the best single method for evaluating capital budgeting projects.

##### Purchase this Solution

##### Solution Summary

Solution explains Basic Capital Budgeting

##### Solution Preview

1) Which are the following are correct:

--one drawback of the discounted payback is that this method does not consider the time value of money, while the regular payback overcomes this drawback.

False

--one drawback of the payback criterion is that this method does not take account of cash flows beyond the payback period.

Correct

--THe regular payback ignores cash flows beyond ...

##### Purchase this Solution

##### Free BrainMass Quizzes

##### Lean your Process

This quiz will help you understand the basic concepts of Lean.

##### Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

##### Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

##### Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

##### MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.