A Project Has a Payback Period of Five Years and the Firm

question 75

Multiple Choice

A project has a payback period of five years and the firm employs a 10 percent cost of capital.Which of the following statements is correct concerning this Project's discounted payback?

• A)discounted payback will exceed five years.
• B)discounted payback will be less than five years.
• C)discounted payback will decrease if the Project's IRR exceeds 10 percent.
• D)discounted payback will increase if the Project's IRR is less than 10 percent.

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Earth Principle

Fundamental concepts or assumptions underlying the study and management of the Earth's environments and resources.

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The comprehensive variety of biological communities and their physical contexts on Earth, from marine to terrestrial, each with its own network of organisms and environmental conditions.