Which of the Following Statements Is Correct

question 73

Multiple Choice

Which of the following statements is correct?

• A)A weakness of both payback and discounted payback is that neither accounts for cash flows received after the payback.
• B)Discounted payback uses a more aggressive reinvestment rate assumption than payback.
• C)Neither payback nor discounted payback uses time value of money concepts.
• D)None of these statements is correct.

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Definitions:

Key Points

The main or essential ideas, facts, or elements of a discussion or argument.

Active Voice

A sentence structure where the subject performs the action expressed by the verb, making the writing more direct and clear.

Important Ideas

Concepts or thoughts that hold significant value or influence within a certain context.

Active Sentences

Sentences structured with the subject performing the action expressed by the verb, emphasizing the actor and action.