Using the Discounted Payback Method,a Project Should Be Accepted When

question 15

True/False

Using the discounted payback method,a project should be accepted when the discounted payback is greater than the project's expected life.

---

Definitions:

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflows and outflows a company receives.

Operating Activities

Operating activities are the day-to-day actions that involve the production, sales, and delivery of a company's products and services, reflected in its cash flow.

Indirect Method

A financial reporting technique used in cash flow statements to adjust net income for changes in non-cash accounts to identify the actual cash inflow or outflow from operating activities.

Cash Dividends

Distributions of a corporation's earnings to shareholders in the form of cash.