Which Statement Regarding Payback Is True

question 91

Multiple Choice

Which statement regarding payback is true?

• A)The shorter a project's payback period, the less desirable the project is normally considered to be by this criterion.
• B)One drawback of the payback criterion for evaluating projects is that this method does not take account of cash flows beyond the payback period.
• C)If a project's payback is positive, then the project should be accepted because it must have a positive NPV.
• D)The regular payback ignores cash flows beyond the payback period, but the discounted payback method overcomes this problem.

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Definitions:

Touch

One of the five senses, involving the perception of physical pressure or deformation against the skin, crucial for human emotional connection and environmental interaction.

Pain

A distressing experience involving both sensation and emotion, stemming from existing or prospective damage to tissue, or expressed through descriptions of such damage.

Hearing

The sense and physiological process of perceiving sounds through the ears.

Smell

The sense that detects odors through the olfactory system, playing a crucial role in human perception and interaction with the environment.