Which One of the Following Statements Related to Payback and Discounted

question 51

Multiple Choice

Which one of the following statements related to payback and discounted payback is correct?

• A)Payback is a better method of analysis than is discounted payback.
• B)Discounted payback is used more frequently in business than is payback.
• C)Discounted payback does not require a cutoff point like the payback method does.
• D)Discounted payback is biased towards long-term projects while payback is biased towards short-term projects.
• E)Payback is used more frequently even though discounted payback is a better method.

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Definitions:

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