If Project a Generates $10 Million of Free Cash Flow

question 47

True/False

If project A generates $10 million of free cash flow over its five year useful life and project B generates $8 million of free cash flow over its useful life,then Project A will have a shorter payback period than Project B,assuming both projects require the same initial investment.

---

Definitions:

Chest Hair

Terminal hair that grows on the chest of human adults, more commonly in males after puberty.

Primary Male Sex Characteristic

Refers to the biological and physiological features present at birth that define male anatomy, including the testes and penis.

Testes

Male reproductive organs responsible for producing sperm and hormones, notably testosterone.

Penis

The male genital organ used for sexual reproduction and urination.