Which of the Following Statements Is CORRECT

question 104

Multiple Choice

Which of the following statements is CORRECT?

• A) 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.
• B) The regular payback method was, years ago, widely used, but virtually no companies even calculate the payback today.
• C) 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.
• D) The regular payback does not consider cash flows beyond the payback year, but the discounted payback overcomes this defect.
• E) The regular payback method recognizes all cash flows over a project's life.

---

Definitions:

Highly Context Dependent

This term refers to phenomena or behaviors that vary significantly according to the specific circumstances or context in which they occur, implying that outcomes are not fixed but change with the situation.

Minimal

Pertaining to the least possible amount, degree, or size; often used to describe interventions or changes that are very small but still significant.

Speech Accommodation Theory

Modification of speech style to the context (e.g., listener, situation) of a face-to-face interindividual conversation.

Convergence and Divergence

In communication, convergence refers to adapting one's speech style to match others, while divergence is altering it to differentiate oneself.