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:

Quantity

A measurable amount or the total number of units of a product, material, or substance.

Quality Of Work

The degree to which a task or project is executed with excellence, precision, and effectiveness, meeting or exceeding standards.

Expectancy Theory

A motivational theory that suggests an individual's motivation is an outcome of how much an individual wants a reward (Valence), the assessment that the likelihood that the effort will lead to expected performance (Expectancy) and the belief that the performance will lead to a reward (Instrumentality).

Motivate Employees

The act of inspiring and encouraging workers to perform their duties effectively and with enthusiasm.