The Discounted Payback Rule May Cause

question 88

Multiple Choice

The discounted payback rule may cause:

• A)some positive net present value projects to be rejected.
• B)the most liquid projects to be rejected in favor of less liquid projects.
• C)projects to be incorrectly accepted due to ignoring the time value of money.
• D)some projects with negative net present values to be accepted.
• E)Both A and D.

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Definitions:

Psychodynamic Model

A theory of psychology that emphasizes the systematic study of the psychological forces underlying human behavior, feelings, and emotions and how they might relate to early experiences.

Unconscious Internal Processes

Mental activities beneath the conscious awareness that influence thoughts, feelings, and behaviors.

Paradigm

A pattern or model of something, or a set of concepts and practices that define a scientific discipline at any particular period of time.

Abnormal Behavior

Actions, thoughts, or feelings that are atypical within a cultural context, potentially impairing functioning or causing distress.