Without Using Formulas, Provide a Definition of Discounted Payback Period

question 38

Multiple Choice

Without using formulas, provide a definition of discounted payback period.

• A) A project analysis tool that measures the acceptability of a project by determining the length of time required for an investment's discounted cash flows to equal its initial cost.
• B) A project analysis tool that measures the acceptability of a project through the difference between a project's initial investment and whether the present value of its cash flow will
• Repay the investment.
• C) A project analysis tool that measures the acceptability of a project by determining the amount of profit that can be expected based on an investment made.
• D) A project analysis tool that determines the amount of time required for an investment to generate cash flows to recover its initial cost.
• E) A ranking method used to assess projects. PI greater than 1 signify positive NPV projects, while PI less than 1 signify negative NPV projects.

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Definitions:

Organizer

An individual or tool that aids in arranging, structuring, or coordinating activities, events, or information effectively.

Feelings

Internal subjective experiences of emotions.

Behaviors

Actions or reactions of an individual or a system in response to external or internal stimuli.

Competently Perform

To carry out a task effectively and efficiently, meeting the expected standards of performance.