A Project Has a Discounted Payback Period That Is Equal

question 43

Multiple Choice

A project has a discounted payback period that is equal to the required payback period.Given this,which of the following statements must be true?
I.The project must also be acceptable under the payback rule.
II.The project must have a profitability index that is equal to or greater than 1.0.
III.The project must have a zero net present value.
IV.The project's internal rate of return must equal the required return.

• A)I only
• B)I and II only
• C)II and III only
• D)I, III, and IV only
• E)I, II, III, and IV

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Definitions:

Reversible Figure

An optical illusion or image that can be perceived in two different ways, depending on how one looks at it.

Gestalt Principle

A theory in psychology that proposes objects are perceived not by means of a passive and automatic registering of features but through active and holistic processes.

Figure And Ground

A principle in visual perception that describes how humans separate an object (the figure) from its surrounding area (the ground).

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant stimuli over time.