The NPV Rule Is Preferred to the Payback Period as a Project

question 12

Multiple Choice

The NPV rule is preferred to the payback period as a project evaluation criterion because the payback period rule ignores the impact of:

• A) III only
• B) I and II only
• C) I and III only
• D) II and III only
• I.the initial cost
• II.the timing of cash flows prior to the payback period
• III.any cash flows beyond the payback period

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Definitions:

Entorhinal Cortex

Cortex located on the medial temporal lobe surface; provides a major route for neocortical input to the hippocampal formation; often degenerates in Alzheimer disease.

Perirhinal Cortex

Cortex lying next to the rhinal fissure on the ventral surface of the brain.

Alzheimer Disease

A progressive neurodegenerative disorder characterized by memory loss, cognitive decline, and personality changes due to brain cell death and dysfunction.

Genetic Defects

Abnormalities in the genome that result in the malfunctioning of genes, often leading to disease or disorders.