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:

Holder in Due Course

A legal term in commercial law for a person who has acquired a negotiable instrument in good faith and for value, and thus has certain protections.

Instrument

A formal document, such as a contract, will, or legal filing, that records and formalizes rights, obligations, or transactions.

Gift

A transfer of personal property by one individual to another without any consideration or payment.

Acceptor

In the context of banking and finance, an acceptor refers to the party who agrees to pay a bill of exchange or draft, typically a bank.