When Choosing Between Two Mutually Exclusive Projects Using the Payback

question 14

Multiple Choice

When choosing between two mutually exclusive projects using the payback period method for evaluating capital projects, one would choose

• A) either project if they both are more than managers' maximum payback period.
• B) neither project if they both are less than managers' maximum payback period.
• C) the project that pays back the soonest.
• D) the project that pays back the soonest if it is equal to or less than managers' maximum payback period.

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Definitions:

Off-The-Job Training

Training that occurs away from the primary work environment, often in a classroom setting or through online modules, to enhance skills and knowledge.

Critical-Incident Technique

A performance assessment technique that keeps a log of employees’ effective and ineffective job behaviours.

Recency Bias

The overemphasis of the most recent behaviours when evaluating individuals’ performance.

Evaluations

The process of assessing or judging the performance, qualities, or value of someone or something.