Quiz Ch 05 – Advantages of the Payback Rule
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
What is the primary advantage of the payback rule?
What is the primary advantage of the payback rule?
Which measure is NOT typically used by firms in making capital budgeting decisions?
Which investment analysis technique is employed the least by CFOs?
According to the survey of CFOs, what percentage of firms always or almost always use the NPV method for evaluating investment projects?
According to the CFOs’ survey, what percentage of firms approximately use the IRR method for evaluating investment projects?
Which statement accurately describes the discounted payback period measure?
What defines the payback period rule?
Under what circumstances will a project have only one internal rate of return?
Given three independent projects within project X with NPVs of + $70, -$40, and + $100 for A, B, and C, how would you decide whether to accept or reject the entire project?
What does the benefit-cost ratio represent?