Analyzed the project using the discounted payback method

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Reference no: EM131613804

Alf is considering opening an inter-planetary delivery company. He has analyzed the project using the discounted payback method. Which one of these statements is true?

-Discounted payback does not require a cutoff point to evaluate a capital budgeting project.

-Payback is a better method of analysis than discounted payback.

-The discounted payback period decreases as the discount rate decreases.

-Discounted payback is biased towards long-term projects. Discounted payback is used more frequently in business than payback.

Reference no: EM131613804

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