One of the common disadvantages of the discounted payback


One of the common disadvantages of the discounted payback decision rule is that I may cause:

a) the most liquid projects to be rejected in favor of the less liquid projects.

b) some positive net present value projects to be rejected.

c) projects to be incorrectly accepted due to ignoring the time value of money

d) a firm to become more long-term focused.

e) some projects to be accepted which would otherwise be rejected under the payback rule.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: One of the common disadvantages of the discounted payback
Reference No:- TGS01570246

Expected delivery within 24 Hours