Two Investments Have the Same Total Cash Inflows and the Same

question 76

Multiple Choice

Two investments have the same total cash inflows and the same payback period. Therefore:

• A) These two investments are equally desirable.
• B) These two investments must be identical in terms of the present value of the cash inflows.
• C) The payback period method can help decision makers choose between these two investments.
• D) One pattern of cash inflows may, in a present value sense, be preferable to the other investment's pattern of cash inflows.
• E) Most likely, these two investments required approximately the same initial investment.

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Definitions:

External Urogenital Orifice

The external opening of the urinary tract and, in females, the reproductive tract, which can be part of the vulva in females or the urogenital opening in males.

Urogenital Sinus

A part of the embryonic development of mammals that gives rise to parts of the urinary and genital tracts.

Urinary Bladder

An organ that stores urine produced by the kidneys before it is expelled from the body.

Ureter

A tube that carries urine from the kidneys to the bladder for storage until elimination.