When the net annual cash flows are equal

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Reference no: EM131173848

When the net annual cash flows are EQUAL, the cash payback period is computed by dividing the cost of the capital investment by the:

A) annual net income

B) net annual cash flow

C) present value of the cash flow

D) present value of the net income

If a payback period for a project is greater than its exected useful life, the

A) project will always be profitable

B) entire initial investment will not be recovered

C) project would only be acceptable if thecompanies cost of capital was low

D) project's return will always exceed the company's cost of capital.

Reference no: EM131173848

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