Which of the Following Statements Is CORRECT

question 94

Multiple Choice

Which of the following statements is CORRECT?

• A) One drawback of the regular payback is that this method does not take account of cash flows beyond the payback period.
• B) If a project's payback is positive, then the project should be accepted because it must have a positive NPV.
• C) The regular payback ignores cash flows beyond the payback period, but the discounted payback method overcomes this problem.
• D) One drawback of the discounted payback is that this method does not consider the time value of money, while the regular payback overcomes this drawback.
• E) The shorter a project's payback period, the less desirable the project is normally considered to be by this criterion.

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Definitions:

Position Power

The authority and influence bestowed upon an individual by the organization based on the position they hold within it.

Intrinsic Motivation

The drive to engage in activities for their inherent satisfaction or pleasure, rather than for some separable outcome or external reward.

Extrinsic Motivation

The drive to perform an activity for external rewards or to avoid negative outcomes, rather than for intrinsic pleasure or satisfaction.

Hospice Care

A type of care designed to provide comfort and support to individuals and their families during the final phase of a terminal illness.