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

question 65

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

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