Which of the Following Statements Is CORRECT

question 84

Multiple Choice

Which of the following statements is CORRECT?

• A) The regular payback method recognizes all cash flows over a project's life.
• B) The discounted payback method recognizes all cash flows over a project's life,and it also adjusts these cash flows to account for the time value of money.
• C) The regular payback method was,years ago,widely used,but virtually no companies even calculate the payback today.
• D) The regular payback is useful as an indicator of a project's liquidity because it gives managers an idea of how long it will take to recover the funds invested in a project.
• E) The regular payback does not consider cash flows beyond the payback year,but the discounted payback overcomes this defect.

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Definitions:

Creative Process

A sequence of thought and activity phases that lead to the generation of new, innovative ideas or creative outcomes.

Graham Wallas

A social psychologist who proposed a four-stage model of the creative process: preparation, incubation, illumination, and verification.

Inspiration

A mental stimulation to do or feel something, especially something creative, often arising from external sources that resonate deeply.

Brainstorming

A group creativity technique designed to generate a large number of ideas for the solution of a problem.