A Project's Payback Period Is Determined to Be 4 Years

question 24

Multiple Choice

A project's payback period is determined to be 4 years.If it is later discovered that additional cash flows will be generated in years 5 and 6,then the project's payback period will:

• A) be reduced.
• B) be increased.
• C) be unchanged.
• D) change but the discount rate must be known to determine the nature of the change.

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Definitions:

Motivated Group

A group of individuals with a high level of enthusiasm and willingness to achieve a common goal or task.

Assets

Resources or items of value owned by an individual or organization, which are expected to provide future economic benefits.

High-Performance Leadership

Leadership that consistently achieves excellent results by effectively managing and motivating individuals and teams.