The Discounted Payback Period of a Project Will Decrease Whenever

question 27

Multiple Choice

The discounted payback period of a project will decrease whenever the:

• A) Discount rate applied to the project is increased.
• B) Initial cash outlay of the project is increased.
• C) Time period of the project is increased.
• D) Amount of each project cash flow is increased.
• E) Costs of the fixed assets utilized in the project increase.

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Definitions:

Convergent Validity

The construct validity of a measure is assessed by examining the extent to which scores on the measure are related to scores on other measures of the same construct or similar constructs.

Correlation Coefficient

A statistical measure that calculates the strength and direction of the relationship between two variables.

True Score

An individual’s actual score on a variable being measured, as opposed to the score the individual obtained on the measure itself.

Measurement Error

The degree to which a measurement deviates from the true score value.