An Investment

question 39

Multiple Choice

An investment

• A)is acceptable if its calculated payback period is less than some prespecified period of time.
• B)should be accepted if the payback is positive and rejected if it is negative.
• C)should be rejected if the payback is positive and accepted if it is negative.
• D)is acceptable if its calculated payback period is greater than some prespecified period of time.
• E)should be accepted any time the payback period is less than the discounted payback period,given a positive discount rate.

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