Which of the following statements is FALSE? The payback period tends to ignore t

ID: 2800117 • Letter: W

Question

Which of the following statements is FALSE?

The payback period tends to ignore the later cash flows.

The payback period is useful as a rough measure of a project's liquidity.

The payback period ignores the time value of money.

The payback period depends on the cost of capital (WACC).

The payback period tends to ignore the later cash flows.

The payback period is useful as a rough measure of a project's liquidity.

The payback period ignores the time value of money.

The payback period depends on the cost of capital (WACC).

dear student...Thank you for using chegg....correct answer is The payback period depends on the cost of capital (WACC).

above statment is false as payback period does not consider time value of money thus does not take into account wacc

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