Which of the Following Is NOT True About the Discounted

question 119

Multiple Choice

Which of the following is NOT true about the discounted payback period?

• A)It accounts for the time value of money.
• B)It ignores cash flows beyond the project lifetime.
• C)The choice of the cut-off date is somewhat arbitrary.
• D)Projects with discounted payback periods beyond the project lifetime will be accepted.

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Definitions:

Noam Chomsky

An influential linguist and cognitive scientist known for his theory of generative grammar, significantly impacting the study of language and the mind.

Functional Fixedness

An intellectual prejudice that prevents a person from considering unconventional uses for an object, thereby limiting creative problem-solving capabilities.

Creative Solution

An innovative and effective response or method developed to address a problem or challenge.

Functional Fixedness

A cognitive bias that limits a person to use an object only in the way it is traditionally used, which can inhibit problem-solving and creativity.