Which of the Following Statements Is CORRECT

question 48

Multiple Choice

Which of the following statements is CORRECT?

• A) the discounted payback method recognizes all cash flows over a project's life, and it also adjusts these cash flows to account for the time value of money.
• B) the regular payback method was, years ago, widely used, but virtually no companies even calculate the payback today.
• C) the regular payback is useful as an indicator of a project's liquidity because it gives managers an idea of how long it will take to recover the funds invested in a project.
• D) the regular payback does not consider cash flows beyond the payback year, but the discounted payback overcomes this defect.
• E) the regular payback method recognizes all cash flows over a project's life.

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Definitions:

Subjective Reasoning

Subjective reasoning involves making judgments based on personal feelings, opinions, and experiences instead of objective evidence.

Evolution

Change in a line of descent.

Reproduction

Reproduction is the biological process by which new individual organisms are generated, ensuring the continuation of a species.

Development

The process by which an organism grows and changes over time, involving both physical and physiological maturation.