As Per the Payback Period Method, a Project Is Acceptable

question 38

Multiple Choice

As per the payback period method, a project is acceptable to a firm if _____.

• A) the total cash inflows yield a rate of return more than the expected rate of return from the project
• B) the payback period is longer than the life of the project
• C) there are no cash outflows during the payback period
• D) discounted value of cash inflows is less than the initial investment
• E) the payback period is less than the maximum cost-recovery time established by the firm

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Definitions:

Biographical Information Blanks

A type of questionnaire collecting detailed personal history data, often used in the employee selection process to assess fitness for a role.

Selection Ratio

The ratio of the number of applicants hired to the total number of applicants available.

Validity Studies

Research conducted to assess the accuracy of a test, measure, or selection tool in predicting job performance or other relevant outcomes.

Employment Choices

The various options and decisions that individuals face regarding their work life, including job selection, career paths, and work-life balance.