Which of the Following Statements Is Correct? Assume That the Project

question 54

Multiple Choice

Which of the following statements is correct? Assume that the project being considered has normal cash flows,with one outflow followed by a series of inflows.

• A)The longer a project's payback period, the more desirable the project is normally considered to be by this criterion.
• B)One drawback of the payback criterion for evaluating projects is that this method does not properly account for the time value of money.
• C)If a project's payback is positive, then the project should be rejected because it must have a negative NPV.
• D)The regular payback ignores cash flows beyond the payback period, but the discounted payback method overcomes this problem.

---

Definitions:

Laparoscopy

A minimally invasive surgical procedure using a laparoscope to examine or treat parts of the abdomen or pelvis.

Discontinuous Innovation

Innovation that represents a significant leap forward, creating new markets or drastically changing the performance and usage of products within existing markets.

Multitouch Functions

Features of devices that recognize and respond to simultaneous touches and gestures on the display surface.

Tracking Mouse

A technology or method used to monitor and analyze the movement and clicks of a mouse by a computer user, often to improve user experience or for research purposes.