Question: Could someone tell which is correct or incorrect for the ones thats incorrect write a brief 5-30 words on why its incorrect a. The longer
Could someone tell which is correct or incorrect for the ones thats incorrect write a brief 5-30 words on why its incorrect
a. The longer a projects payback period, the more desirable the project is normally considered to be by this criterion, b. One drawback of the payback criterion for evaluating projects is that the method does not properly account for the time value of money c. If a project's payback is positive, then the project should be rejected because it must have a negative NPV. d. The payback period can never lead to the acceptance of a negative NPV project. e. If a company uses the same payback requirement to evaluate all projects, say it requires a payback of 4 years or less, then the company will tend to reject projects with relatively short lives and accept for lived projects, and this will cause its risk to increase over time
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