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:

Homogeneity

The condition of everything being identical or of a single type.

Argentina

A country located in the southern half of South America, known for its diverse landscapes from the Andes mountains to the Pampas grassland, as well as its rich cultural heritage, including tango music and dance.

Cultural Relativism

The principle that an individual's beliefs and activities should be understood by others in terms of that individual's own culture.

Consensual

Involving or based on mutual agreement between all parties involved.