Which of the Following Statements Concerning Payback Analysis Is True

question 34

Multiple Choice

Which of the following statements concerning payback analysis is true?

• A)An investment with a shorter payback is preferable to an investment with a longer payback.
• B)The payback method ignores the time value of money concept.
• C)The payback method and the unadjusted rate of return are different approaches that will not consistently lead to the same conclusion.
• D)All of the other answers are correct.

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Definitions:

Written Communication

Messages communicated through the written word, such as e-mails, reports, memos, letters, and other channels.

Reports

Formal written accounts or statements describing the progress, results, or status of a particular matter or investigation, often used for informational or analytical purposes.

Memos

Short for "memorandums," these are concise written documents used within an organization to communicate policies, procedures, or related official business.

Sender

The individual or entity initiating a message or communication to another party or parties.