Which Statement Below Is True About the Evaluation of an Investment

question 85

Multiple Choice

Which statement below is true about the evaluation of an investment having uneven cash flows using the payback method?

• A) It cannot be done.
• B) It can be done only by matching cash inflows and investment outflows on a year-by-year basis.
• C) It will produce essentially the same results as those obtained through the use of discounted cash flow techniques.
• D) It requires the use of a sophisticated calculator or computer software.

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Definitions:

Postmodernist

An approach that critiques modernist views of society, emphasizing the subjective nature of reality and the role of culture, power, and identity.

Cultural Capital

The non-material social assets (knowledge, education, language skills, etc.) that can help an individual gain advantage in society.

Educational Attainment

The highest level of education an individual has completed, which can influence one's socioeconomic status and employment opportunities.

Economic Obstacles

Factors or barriers that hinder the efficient operation of an economy, affecting growth, development, and the ability of individuals to engage in economic activities.