The Payback Period Rule Accepts All Projects for Which the Payback

question 24

Multiple Choice

The payback period rule accepts all projects for which the payback period is

• A)greater than the cut-off value.
• B)less than the cut-off value.
• C)positive.
• D)an integer.

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Definitions:

Leading Indicators

Economic factors that change before the economy starts to follow a particular pattern or trend, used to predict future economic movements.

Lagging Indicators

Economic factors that change after the economy has already begun to follow a particular trend, used to confirm the trend.

Balanced Scorecard

A strategic planning and management system that organizations use to communicate what they are trying to accomplish, align day-to-day work with strategy, and measure and monitor progress toward strategic targets.

Research And Development

Activities undertaken by a company to innovate and introduce new products or improve existing products or processes.