Which of the Following Statements Regarding Payback (PB) Is/are True

question 68

Multiple Choice

Which of the following statements regarding payback (PB) is/are true?

• A) The statistic requires keeping a running subtotal of the cumulative sum of the cash flows up to the point that this sum exactly offsets the initial investment.
• B) Is a capital budgeting technique that generates decision rules and associated metrics for choosing projects based on how quickly they return their initial investment.
• C) both a and b are true
• D) none of the above

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Definitions:

Generalization

The process of extending the application of a principle or conclusion to many situations without additional evidence.

Discrimination

This refers to the unfair or prejudicial treatment of individuals based on characteristics such as race, age, or gender.

Extinction

In behavioral psychology, it refers to the process where a conditioned response decreases in frequency and eventually disappears when the reinforcement is no longer presented.

Conditioned Stimulus

An initially unimportant stimulus that, following its association with an unconditioned stimulus, comes to evoke a conditioned response.