McqMate
| Q. |
Which of the following statements is incorrect? |
| A. | the simplicity of the payback period method is one of its most appealing qualities even though it fails to measure project profitability. |
| B. | if two investors are considering the same project, the payback period will be longer for the investor with the higher marr. |
| C. | considering the cost of funds in a payback calculation is equivalent to finding the time period when the project balance becomes zero. |
| D. | if you were to consider the cost of funds in a payback period calculation, you would have to wait longer to breakeven as you increase the interest rate. |
| Answer» B. if two investors are considering the same project, the payback period will be longer for the investor with the higher marr. | |
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