If a Payback Period for a Project Is Greater Than

question 150

Multiple Choice

If a payback period for a project is greater than its expected useful life, the

• A) project will always be profitable.
• B) entire initial investment will not be recovered.
• C) project would only be acceptable if the company's cost of capital was low.
• D) project's return will always exceed the company's cost of capital.

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Definitions:

Equation

A mathematical declaration affirming that two expressions hold equal values.

Solution

A means by which an issue or problem is solved, or in chemistry, a homogenous mixture of two or more substances.

Absolute Value

A measure of a number's distance from zero, regardless of direction on the number line, represented by \(|x|\).

Set Notation

A symbolic way of representing and specifying a set and its elements using curly brackets and specific symbols.