Which method provides more confidence, the payback method or the net present value method?
A. Payback because it provides a good timetable.
B. Payback because it tells you when you break even.
C. Net present value because it considers all inflows and outflows and the time value of money.
D. Net present value because it does not need to use cost of capital.
Answer:C
Which method provides more confidence, the payback method or the net present value method?
A. Payback because it provides a good timetable. B. Payback because it tells you when you break even. C. Net present value because it considers all inflows and outflows and the time value of money. D. Net present value because it does not need to use cost of capital.