The Discounted Payback Rule May Cause: I

question 44

Multiple Choice

The discounted payback rule may cause: I.some positive net present value projects to be rejected.
II) the most liquid projects to be rejected in favor of less liquid projects.
III) projects to be incorrectly accepted due to ignoring the time value of money.
IV) some projects with negative net present values to be accepted.

• A)(I) correct only.
• B)(II) correct only.
• C)(III) correct only.
• D)(IV) correct only.
• E)(I) and (IV) correct only.

---

Definitions:

Gastroenterology

The branch of medicine focused on the digestive system and its disorders.

Osteopathy

A type of alternative medicine that emphasizes physical manipulation of the body's muscle tissue and bones.

Urologist

A medical doctor specializing in the diagnosis, treatment, and management of disorders and diseases related to the urinary system and male reproductive organs.

Neurologist

A medical doctor who specializes in diagnosing and treating disorders of the nervous system, including the brain and spinal cord.