Which of the Following Statements About the Evaluation of an Investment

question 144

Multiple Choice

Which of the following statements about the evaluation of an investment having uneven cash flows using the payback method is correct?

• A) It CANNOT be done.
• B) It can be done only by matching cash inflows and investment outflows on a year-by-year basis.
• C) It will produce essentially the same results as those obtained through the use of discounted cash flow techniques.
• D) It requires the use of a sophisticated calculator or computer software.

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Definitions:

Northern Europe

A geographical and cultural region in the northern part of Europe, encompassing countries such as Denmark, Finland, Iceland, Norway, and Sweden.

Japan

An East Asian island nation characterized by its rich culture, technological advancements, and historical significance.

China

A country in East Asia, the world's most populous nation, with a rich history, culture, and rapidly growing economy.

Probability

A branch of mathematics concerned with measuring the likelihood of a specific event's occurrence, expressed as a number between 0 and 1.