Which One of the Following Statements Is Correct Concerning the Payback

question 36

Multiple Choice

Which one of the following statements is correct concerning the payback period?

• A)An investment is acceptable if its calculated payback period is greater than some pre-specified period of time.
• B)An investment should be accepted if the payback is positive and rejected if it is negative.
• C)An investment should be rejected if the payback is positive and accepted if it is negative.
• D)An investment is acceptable if its calculated payback period is less than some pre-specified period of time.
• E)An investment should be accepted any time the payback period is less than the discounted payback period, given a positive discount rate.

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Definitions:

Causes Of Behavior

The various psychological, social, environmental, and biological factors that contribute to an individual's actions and reactions.

Attribution Theory

A social psychology theory focused on how people interpret and identify the causes of others’ behavior, attributing it to either internal dispositions or external situations.

Basic Assumptions

Fundamental beliefs or principles that are accepted as true without proof and form the basis for reasoning or behavior.

Dispositional

pertaining to stable characteristics or traits of an individual that influence their behaviors and attitudes.