Which One of the Following Statements Is Correct Concerning the Payback

question 349

Multiple Choice

Which one of the following statements is correct concerning the payback period?

• A) An investment is acceptable if its calculated payback period is less than some pre-specified period of time.
• 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 period of time.
• E) An investment should be accepted any time the payback period is less than the discounted payback period, given a positive discount rate.

---

Definitions:

Performance Differences

Performance differences refer to the disparities in outcomes or achievements between individuals or groups under study.

Between Groups

Refers to comparisons made across different groups or categories in an experiment or study.

Analysis of Variance

A statistical technique used to determine if there are any statistically significant differences between the means of three or more independent (unrelated) groups.

Well-being

A state or condition that encompasses physical, mental, and emotional health, often considered in terms of how individuals feel about their life and circumstances.