Which of the Statements Below Is FALSE

question 71

Multiple Choice

Which of the statements below is FALSE?

• A) Firms rarely use the payback period for small-dollar decisions.
• B) Many companies use the payback period for small-dollar decisions because the time spent gathering the accurate cash flow may be lowered substantially if it is necessary to estimate only through the first few years.
• C) Many companies use the payback period for small-dollar decisions because the accuracy of future cash flows on these smaller projects may be quite difficult to estimate far into the future.
• D) Many companies use the payback period for small-dollar decisions because it does prevent a serious error when the future cash flow is never sufficient to recover the initial cash outlay.

---

Definitions:

Percentage

A mathematical term describing a number or ratio as a fraction of 100, used to represent proportions, rates, or comparative amounts.

Influencer Marketing

The practice of focusing on the identification and recruitment of influencers to advocate a company’s products, services, and brands rather than focusing exclusively on prospective buyers.

Instagram

A social networking service that allows users to upload photos and videos that can be edited with filters, organized with tags and location information, and shared publicly or with approved followers.

Media Preferences

The favored media channels or platforms individuals choose for receiving information or entertainment.