A Project's Payback Period Is Determined to Be Four Years

question 12

Multiple Choice

A Project's payback period is determined to be four years.If it is later discovered that additional cash flows will be generated in years five and six, then:

• A)the Project's payback period will be reduced.
• B)the Project's payback period will be increased.
• C)the Project's payback period will be unchanged.
• D)the discount rate must be known to determine whether the payback period changes.