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:

Psychokinesis

The purported psychic ability to move or manipulate objects with the mind without physical interaction, widely regarded as pseudoscience.

Precognition

The psychic ability to know or predict events before they happen, considered a paranormal phenomenon.

Telepathy

The supposed communication of thoughts or ideas without using the known sensory channels or physical interaction.

ESP

Extrasensory perception, the claimed ability to gain information without relying on known physical senses or deducing from previous experience.