The Payback Rule Can Be Best Stated As

question 351

Multiple Choice

The payback rule can be best stated as:

• A) An investment is acceptable if its calculated payback period is less than some pre-specified number of years.
• B) An investment should be accepted if the payback is positive and rejected if it is negative.
• C) An investment should be rejected if the payback is positive and accepted if it is negative.
• D) An investment is acceptable if its calculated payback period is greater than some pre-specified number of years.
• E) An investment is acceptable if its calculated payback period is equal to its deprecation useful life.

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