What Is the Difference Between the Normal Payback Technique and the Discounted

question 53

Multiple Choice

What is the difference between the normal payback technique and the discounted payback technique?

• A)The discounted payback is calculated using the future value of cash flows.
• B)The normal payback method ignores the time value of money.
• C)The normal payback method discounts future cash flows.
• D)The discounted payback method ignores the time value of money.

---

Definitions:

Penetration Pricing

A pricing strategy where a product is priced lower than the competition to attract customers and gain market share.

Prestige Pricing

A pricing strategy where goods are priced higher to convey a sense of luxury or exclusivity.

Specialty Product Pricing

A pricing strategy applied to products that are unique or considered high-end, often leading to higher prices due to their perceived value or exclusivity.

Parallel Construction

A rhetorical and grammatical technique in which phrases or sentences are structurally similar to make writing or speech more cohesive and balanced.