A Project Has a Payback Period of Five Years and the Firm

question 41

Multiple Choice

A project has a payback period of five years and the firm employs a 10 percent cost of capital.Which of the following statements is correct concerning this Project's discounted payback?

• A)Discounted payback will exceed five years
• B)Discounted payback will be less than five years
• C)Discounted payback will decrease if the Project's IRR exceeds 10 percent
• D)Discounted payback will increase if the Project's IRR is less than 10 percent

---

Definitions:

Horney

Refers to Karen Horney, a psychoanalytic psychologist known for her theory on neurosis, which emphasizes social relationships over biological drives.

Anima

In Jungian psychology, the inner feminine side of a man's personality or a man's inner personal feminine counterpart.

Animus

In psychological theory, particularly that of Carl Jung, animus refers to the unconscious masculine side of a woman.

Compliant Personality

Behaviors and attitudes associated with the neurotic trend of moving toward people, such as a need for affection and approval.