问题如下:
Which of the following statement regarding payback period is least likely correct?
选项:
A. It is impossible that the project with the shortest payback period has a negative NPV
B. Payback period does not take the profitability of the project into consideration.
C. Payback period ignores cash flows after the cumulative cash flows cover the initial investment.
解释:
A is correct. The project with the shortest payback period may still have a negative NPV, because it ignores cash flows after the payback period. This is the disadvantage of payback period.
b为什么不对?