The NPV Method Is Preferred to the Payback Period Method

question 143

Multiple Choice

The NPV method is preferred to the payback period method as a project evaluation criterion because the payback period rule ignores the impact of:
I.the initial cost
II.the timing of cash flows prior to the payback period
III.any cash flows beyond the payback period

• A)III only
• B)I and II only
• C)I and III only
• D)II and III only

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Definitions:

Employee's Entry

The process or event of a new employee joining an organization, including orientation and integration into the workplace.

Attract Candidates

The strategies or practices employed by organizations to draw potential employees to apply for job vacancies.

Pay Hikes

An increase in salary or wages, often awarded to employees based on performance, market adjustments, or cost of living increases.

Recession

A period of temporary economic decline during which trade and industrial activity are reduced.