In Calculation of a Payback Period, What Use Is Made

question 141

Multiple Choice

In calculation of a payback period, what use is made of cash flows occurring after the end of the payback period?

• A) They are ignored.
• B) They are discounted back to time zero.
• C) They are included in the accept/reject decision.
• D) They are normally canceled by initial negative cash flows.

---

Definitions:

Unexamined Assumptions

Preconceived notions or beliefs that are accepted without questioning or critical analysis.

Cultural Reason

A cultural reason refers to the rationale or motive behind actions, beliefs, or customs, rooted in the traditions or values of a particular society.

Conference Schedules

The planned timetable of events, sessions, and activities that will take place during a conference.

Unreliable Transportation

Transportation services that are inconsistent, unpredictable, or unavailable, affecting individuals' ability to commute effectively.