A Project Has a Payback Period of 5 Years and the Firm

question 69

Multiple Choice

A project has a payback period of 5 years and the firm employs a 10% cost of capital.Which of the following statements is correct concerning this project's discounted payback?

• A) Discounted payback will exceed 5 years.
• B) Discounted payback will be less than 5 years.
• C) Discounted payback will decrease if the project's IRR exceeds 10%.
• D) Discounted payback will increase if the project's IRR is less than 10%.

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Definitions:

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A viewpoint in psychology that focuses on understanding how external factors, such as environment or social interactions, shape behaviors.

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