Which of the Following Is True About Using Discounted Payback

question 89

Multiple Choice

Which of the following is true about using discounted payback analysis for projects which have only positive cash flows after the initial outlay and for which the discount rate is positive?

• A) Discounted payback is better than simple payback because in simple payback analysis the cutoff payback period is arbitrarily set by management
• B) Any project that fails to pay back at all on a discounted basis must have a positive NPV
• C) When comparing two projects, the one with shorter payback period on a discounted basis will have a larger NPV
• D) Discounted payback is much simpler to calculate than regular payback
• E) The discounted payback period will be longer than the regular payback period

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Definitions:

Umbilical Vein

A blood vessel in a fetus that carries oxygenated blood from the placenta to the fetus.

Inferior Vena Cava

Vein that returns blood from the lower limbs and the greater part of the pelvic and abdominal organs to the right atrium.

Meconium

First intestinal discharges of the newborn infant, greenish in color and consisting of epithelial cells, mucus, and bile.

Milk Letdown

Expulsion of milk from the alveoli of the mammary glands; stimulated by oxytocin.