The Discounted Payback Period Takes the Time Value of Money

question 9

True/False

The discounted payback period takes the time value of money into account in that it uses discounted free cash flows rather than actual undiscounted free cash flows in calculating the payback period.

---

Definitions:

Regression

A psychological defense mechanism where an individual reverts to an earlier stage of development in response to stress.

Bed-Wetting

Involuntary urination while asleep after the age at which bladder control usually occurs, typically seen in children.

Psychosexual Stage

A concept in Freudian psychology that describes a series of developmental stages from childhood through adulthood, where pleasure centers on different parts of the body.

Slip of the Tongue

An unintentional error in speech where a word is misused, often revealing a subconscious thought or suppressed feeling.