If the Payback Period for a Project Is Greater Than

question 161

Multiple Choice

If the payback period for a project is greater than its economic life the

• A) project will always be profitable.
• B) entire initial investment will never 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:

Forward Scheduling

A planning method where tasks are scheduled from the present date forward into the future, aiming to meet deadlines by determining the earliest possible start times.

Unintentional Outputs

Unintentional outputs are results or consequences that occur without being a primary target or goal of an action or process, often unexpected.

Output Phase

The stage in a production or operation process where the final product or service is completed and ready for consumption or distribution.

Inventory Cost

Inventory cost includes all costs associated with procuring, storing, and managing goods a business intends to sell.