1. Payback period is one of the nondiscounting models used in capital investment decisions. What are some...

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1. Payback period is one of the nondiscounting models used in capital investment decisions. What are some of the pros and cons associated with this model?

2. What is a capital investment and why do companies need to evaluate whether to make the investment or not?

3. Why do come companies prefer to use discounting in their capital investment decisions? What is a risk associated with this discounting model?

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ISBN: 978-1111821647

12th edition

Authors: Charles W. Lamb, Joe F. Hair, Carl McDaniel

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Posted Date: Feb 03, 2024 12:42 AM

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1. Payback period is one of the nondiscounting models used in capital investment decisions. What are some...

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1 Pros and Cons of Payback Period Pros Simplicity Payback period is easy to understand and calculate making it accessible for nonfinancial stakeholders Focus on Liquidity It emphasizes the liquidity a... View the full answer

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