Two Investments Have the Same Total Cash Inflows and the Same

question 13

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 be preferable to the other investment's pattern of cash inflows.
• E)Most likely,these two investments required approximately the same initial investment.

---

Definitions:

Identity

The sense of self, characterized by one's beliefs, personality traits, and values, that distinguishes an individual from others.

Moral Intuitions

Immediate, gut-level ethical judgments that people make without relying on conscious reasoning.

Temperament

The inherent part of an individual's personality that influences how they react to the environment and situations, often evident from infancy.

Egocentrism

The inability to differentiate between one's own perspective and the perspective of others.