Which One of the Following Statements Is Correct Concerning the Payback

question 349

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:

Measurable

Capable of being measured or quantified.

Testable

A characteristic of a hypothesis or theory that it can be subjected to empirical experiments or observations to determine its validity or accuracy.

Religious People

Individuals who follow a specific religion or possess a strong belief in a supernatural power or powers that control human destiny.

Plato

An ancient Greek philosopher, student of Socrates, and teacher of Aristotle, known for his works on forms, ethics, and politics.