The Payback Period Rule

question 49

Multiple Choice

The payback period rule:

• A)varies the cut-off point with the interest rate.
• B)determines a cut-off point so that all projects accepted by the NPV rule will be accepted by the payback period rule.
• C)requires an arbitrary choice of a cut-off point.
• D)both A and C.

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Definitions:

Compensation

Payment or benefits that an employee receives in return for their work, which can include salary, wages, benefits, and bonuses.

Corporations

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States

Defined territorial areas within a country, each with its own government and regulatory powers.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders; it has rights, privileges, and liabilities independent of those of its members.