Which of the Following Statements Regarding the Cash Payback Period

question 70

Multiple Choice

Which of the following statements regarding the cash payback period is true?

• A)The longer the payback, the longer the estimated life of the asset will be.
• B)The longer the payback, the sooner the cash spent on the investment will be recovered.
• C)The shorter the payback, the possibility of obsolescence will be less likely.
• D)all of these choices

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Definitions:

Percentage

A proportion or part in relation to a whole, represented as a fraction of 100.

Water-Soluble Material

A substance that can dissolve in water, making it capable of being washed away or diluted in aqueous solutions.

Invention

The creation of a new product, process, or idea.

Creative Destruction

A process where new innovations lead to the demise of older economic structures and systems, fostering new growth and value creation.