Pay-back Period method of capital budgeting is not suitable in which of the following circumstances ? (A) Where the firm is more interested in quick recovery of funds than profitability (B) Where the expected returns fro
CS Executive · Financial and Strategic Management · PYQS · December 2022
Pay-back Period method of capital budgeting is not suitable in which of the following circumstances ? (A) Where the firm is more interested in quick recovery of funds than profitability (B) Where the expected returns from the projects are highly uncertain (C) Under conditions of political and economic pressures (D) None of the above
Answer & Explanation:
Correct Answer: Option (D)
Official answer key: (D).
Topics: Financial Management
Related Questions in this Topic
- Assume that a firm has accurately calculated the net cash flows relating to an investment proposal. If the net present v...
- A firm has EBIT of ₹ 50,000. Market value of 10% debt is ₹ 80,000 and overall capitalization rate is 20%. Market value o...
- A firm has inventory turnover of 4 and cost of goods sold is ₹ 7,50,000. With better inventory management, the inventory...
- 80% of sales of ₹ 12,00,000 of a firm are on credit. It has a Receivable Turnover of 8. What is the Average collection p...
- A Company's Raw material storage period is 20 days; Finished goods storage period is 25 days; Receivables (Debtors) coll...