Which One of the Following Statements Is Correct Concerning the Payback

question 273

Multiple Choice

Which one of the following statements is correct concerning the payback period?

• A) An investment is acceptable if its calculated payback period is less than some pre- specified period of time.
• B) An investment should be accepted if the payback is positive and rejected if it is negative.
• C) An investment should be rejected if the payback is positive and accepted if it is negative.
• D) An investment is acceptable if its calculated payback period is greater than some pre- specified period of time.
• E) An investment should be accepted any time the payback period is less than the discounted payback period, given a positive discount rate.

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Definitions:

Revised Article 3

An update or modification to Article 3 of the Uniform Commercial Code (UCC), which governs negotiable instruments including checks and promissory notes.

Holder by Negotiation

Holder by negotiation refers to a person who has obtained possession of a negotiable instrument, such as a check, in a manner consistent with the statute's requirements for transfer, thereby acquiring the right to payment.

Involuntary

Occurring without a person's consent or against their will, often referring to actions or processes not chosen by an individual or group.

For Deposit Only

An endorsement on a check indicating that it can only be deposited into an account, not cashed.