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shepuryov [24]
2 years ago
5

A significant flaw in the payback method of capital budgeting is that____________ Group of answer choices it ignores cash flows

following the payback period. it is calculated using arithmetic average instead of weighted moving average. it assumes future cash flows are reinvested at the IRR. it only calculates present values prior to comparing them to investment amount.
Business
1 answer:
saul85 [17]2 years ago
6 0

Answer:it ignores cash flows following the payback period

Explanation:

The payback method of budgeting does not  consider inflows of cash that occur beyond or following the payback period, thus ignoring the profitability of one project as compared to another in the sense that one project may be more valuable than another based on future cash flows.

Also, Many capital investments provide complexity of cash flows as a result of   investment returns over a period of many years, which also does not align with Payback method , because of this limitation, many businesses have adjusted by using their discretion to override this rule.

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3 years ago
Pinder co. produces and sells high-quality video equipment. to finance its operations, pinder co. issued $25,000,000 of five-yea
harina [27]

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4 0
2 years ago
________ company emphasizes its home country culture throughout its operations, and it tends to staff key positions abroad with
photoshop1234 [79]

Answer:

The correct answer is letter "C": An ethnocentric.

Explanation:

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7 0
3 years ago
The business case for an ethical strategyA) relates to the company's business model and business-level strategy.B) must be artic
UkoKoshka [18]

Answer:

The correct answer is option D.

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2 years ago
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3 years ago
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