Which the payback method approach to the investment

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Problem 1: In capital budgeting, the payback method approach to the investment decision highlights:

a. cash flow over the life of the investment
b. the liquidity of the investment
c. the tax savings of the depreciation amounts
d. having as lengthy payback time as possible

Problem 2: The approach to capital budgeting which divides an accounting measure of income by an accounting measure of investment is the:

a. net present value
b. internal rate of return
c. accrual accounting rate of return
d. payback method

Problem 3: 6 In capital budgeting, a project is accepted only if the internal rate of return  equals or:

a. Exceeds the required rate of return
b. Is less than the required rate of return
c. Exceeds the net present value
d. Exceeds the accrual accounting rate of return

Reference no: EM132811029

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