Which of the Following Statements Is CORRECT

question 52

Multiple Choice

Which of the following statements is CORRECT?

• A)The shorter a project's payback period, the less desirable the project is normally considered to be by this criterion.
• B)One drawback of the regular payback is that this method does not take account of cash flows beyond the payback period.
• C)If a project's payback is positive, then the project should be accepted because it must have a positive NPV.
• D)The regular payback ignores cash flows beyond the payback period, but the discounted payback method overcomes this problem.
• E)One drawback of the discounted payback is that this method does not consider the time value of money, while the regular payback overcomes this drawback.

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Definitions:

Free-Exercise Clause

A clause in the First Amendment of the U.S. Constitution that states that government (state and federal) cannot make a law “prohibiting the free exercise” of religion. This clause is interpreted to include absolute freedom to believe and freedom to act that may face state restriction.

First Amendment

An amendment to the United States Constitution prohibiting the making of any law respecting an establishment of religion, impeding the free exercise of religion, abridging the freedom of speech, infringing on the freedom of the press, interfering with the right to peaceably assemble, or prohibiting the petitioning for a governmental redress of grievances.

Prohibiting

The act of legally preventing or forbidding something from happening or being done.

Defamation

The act of communicating false statements about a person that injure the reputation of that person or deter others from associating with them.