Which of the Following Statements Is Accurate

question 193

Multiple Choice

Which of the following statements is accurate?

• A) A project that just breaks even on an accounting basis will not pay back.
• B) A project that just breaks even on an accounting basis will have a positive rate of return.
• C) A project cannot earn a positive return unless its payback period is longer than the project life.
• D) If the net income from a project is zero, then the project will have a discounted payback that is equal to its regular payback.
• E) The relation between project life and payback period alone cannot tell you whether a project has a positive or negative NPV.

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Definitions:

Undifferentiated Targeting

A marketing strategy where a company decides to ignore market segment differences and appeals the whole market with one offer or one strategy.

Benefit Segmentation

A marketing approach that entails categorizing a market by the varied benefits consumers desire from the product.

Concentrated Targeting

A marketing strategy where a business focuses its efforts on a narrowly defined market segment or niche, rather than trying to appeal to a broader market.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.