Evaluate the Following Projects Using the Payback Method Assuming a Rule

question 63

Multiple Choice

Evaluate the following projects using the payback method assuming a rule of 3 years for payback.

• A) Project A can be accepted because the payback period is 2.5 years but Project B cannot be accepted because it's payback period is longer than 3 years.
• B) Project B should be accepted because even though the payback period is 2.5 years for Project A and 3.001 for project B, there is a $1,000,000 payoff in the 4th year in Project B.
• C) Project B should be accepted because you get more money paid back in the long run.
• D) Both projects can be accepted because the payback is less than 3 years.

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Definitions:

Within-group differences

Variabilities or diversities that exist among individuals within a single group, category, or population.

Filial piety

A virtue of respect and devotion to one's parents and ancestors in many cultures, particularly influential in Confucian societies.

Cultural experiences

Interactions, practices, and activities that give individuals insight into or an understanding of different cultures, traditions, and ways of life.

Social organizations

Structured groups of people who come together to pursue common interests or fulfill societal functions, such as families, businesses, and governmental bodies.