The decision rule for using the NPV
The decision rule for using the NPV states that when the NPV is greater than ______________ the project should be accepted.
| The initial outlay | |
| Zero | |
| The IRR | |
| One | |
| None of the above |
8.
Which of the statements correctly identifies the disadvantages of the payback period method?
| The payback period does not identify the varying levels of risk in a project | |
| The payback period does not account for the timing of the project’s cash flows | |
| The payback period does not account for the varying levels of risk in a project | |
| All of the above | |
| None of the above |
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