A Project's Payback Period Is Determined to Be 4 Years

question 24

Multiple Choice

A project's payback period is determined to be 4 years.If it is later discovered that additional cash flows will be generated in years 5 and 6,then the project's payback period will:

• A) be reduced.
• B) be increased.
• C) be unchanged.
• D) change but the discount rate must be known to determine the nature of the change.

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Definitions:

Hazardous Occupations

Jobs or professions that expose workers to risks that could harm their health or safety.

Davis-Bacon Act

A federal law that requires the payment of prevailing wage rates to all laborers and mechanics working on public construction projects.

Walsh-Healy Public Contracts Act

A United States federal law that establishes minimum wage, maximum hours, and safety and health standards for work on contracts with the federal government.

Prevailing Wages

The average wage paid to workers within a specific area for a given trade or occupation, often determined by government standards for public works projects.