Which of the Following Statements Is Correct

question 18

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 the statements are correct.

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Definitions:

Compete

The act of striving against others for the purpose of achieving dominance, superiority, or an award.

Coevolve

The process by which two or more species reciprocally affect each other's evolution through natural selection.

Mutualistic

A type of symbiotic relationship where both organisms involved derive benefit from the association.

Indicator Species

Species whose presence and abundance in a community provide information about conditions in the community.