22.Projects with shorter payback periods have higher risk, as thecompany has less time to...22.Projects...

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Accounting

22.
Projects with shorter payback periods have higher risk, as thecompany has less time to respond to unanticipated changes.
True or False
23.
If the internal rate of return (IRR) of an investment is lowerthan the hurdle rate, the project should be rejected.
True or False

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22 False Payback period is simply the amount of time a project will recover its initial investment The shorter the payback period better it is as the company is able to recover its inital investments as there will be See Answer

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In: Accounting22.Projects with shorter payback periods have higher risk, as thecompany has less time to...22.Projects with shorter payback periods have higher risk, as thecompany has less time to respond to unanticipated changes.True or False23.If the internal rate of return (IRR) of an investment is lowerthan the hurdle rate, the project should be rejected.True or False