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.

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Definitions:

Organizational Control

Mechanisms or systems used by an organization to regulate behavior, processes, or outcomes to achieve its goals.

Feedforward Control

A management strategy that focuses on regulating inputs (rather than outputs) to manage future performance and prevent problems.

Concurrent Control

A management technique wherein monitoring and adjustments occur simultaneously with the implementation of activities to ensure objectives are met.

Feedback Control

A system or process that adjusts its operation based on differences between the actual outcome and the desired outcome, often used in management and engineering to maintain desired performance levels.