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.