Which of the Following Statements Is False

question 65

Multiple Choice

Which of the following statements is false?

• A) If the payback period is less than the maximum acceptable payback period, accept the project.
• B) If the payback period is greater than the maximum acceptable payback period, reject the project.
• C) If the payback period is less than the maximum acceptable payback period, reject the project
• D) Two of the above.

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Definitions:

Initial Investments

The upfront capital or resources expended to start a project, acquire an asset, or establish a business.

Income Taxes

Taxes imposed by the government on the income earned by individuals and corporations.

Working Capital

The difference between a company's current assets and current liabilities, indicating the available short-term resources to fund operations.

Income Tax Rate

The percentage of an individual or company's income that is paid to the government as tax.