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:

Independently

Acting or thinking in a way that is free from outside control or influence.

Business Communication

Business communication encompasses the sharing of information between people within and outside a company, using various methods such as emails, reports, and presentations, to achieve business objectives.

Senior Management

High-level executives of an organization responsible for strategic decision-making and overseeing operations.

Favourable Impression

A positive opinion or feeling formed about someone or something, based on perceived qualities or actions.