The Cash Payback Technique

question 2

Multiple Choice

The cash payback technique

• A) should be used as a final screening tool.
• B) can be the only basis for the capital budgeting decision.
• C) is relatively easy to compute and understand.
• D) considers the expected profitability of a project.

Calculate averages and understand their applications.

Understand the role of financial analysts in identifying potential problems in firm operations.

Comprehend the purpose and constituents of the Statement of Cash Flows.

Grasp the concept of Free Cash Flow (FCF) and its implications for a firm's operations and shareholder value.