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:

Ashen

Referring to a pale, grayish skin tone, often associated with illness or shock.

Distended Veins

Veins that are enlarged, swollen, or fuller than normal, often indicating an underlying medical condition.

Capillary Filling Time

A clinical test used to assess blood circulation by applying pressure to the skin to create blanching and then observing the time it takes for color to return.

Pallor

An unhealthy pale appearance typically indicating anemia or lack of blood supply.