Without Using Formulas, Provide a Definition of Discounted Payback Period

question 24

Multiple Choice

Without using formulas, provide a definition of discounted payback period.

• A) A project analysis tool that measures the acceptability of a project by determining the length of time required for an investment's discounted cash flows to equal its initial cost.
• B) A project analysis tool that measures the acceptability of a project through the difference between a project's initial investment and whether the present value of its cash flow will repay the investment.
• C) A project analysis tool that measures the acceptability of a project by determining the amount of profit that can be expected based on an investment made.
• D) A project analysis tool that determines the amount of time required for an investment to generate cash flows to recover its initial cost.
• E) A ranking method used to assess projects. PI greater than 1 signify positive NPV projects, while PI less than 1 signify negative NPV projects.

---

Definitions:

Syllogism Figures

The different possible arrangements of the three terms in a syllogism, affecting the structure of the argument.

Valid Argument

An argument wherein if the premises are true, the conclusion must also be true, due to its logical form.

Premises Guarantee

In logic, the condition where the premises of an argument necessarily lead to its conclusion, ensuring its validity.

Existential Import

The implication that the subjects referred to in a proposition actually exist.