Which of the Following Statements About the Payback Period Evaluation

question 40

Multiple Choice

Which of the following statements about the payback period evaluation technique is true?

• A)Since cash flows received in the future are less certain than cash flows received today, the payback period technique takes risk into consideration.
• B)The payback period evaluation technique will always lead to the same decision as the net present value technique if the post-payback duration is zero.
• C)The payback period technique favors investments that return large cash flows in the initial years of the investment's life.
• D)Both A and C are true statements.

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Definitions:

Largest National Union

The most extensive and influential labor union in a country, often representing a significant portion of the workforce across various sectors.

Collective Bargaining

The process where workers, through their unions, negotiate contracts with their employers to determine terms of employment.

Workplace Hazards

Potential sources of harm or adverse health effects on individuals present in a work environment.

Unionization

The process of forming or joining a labor union, which represents the collective interests of workers in negotiations with employers.