What Is the Decision Rule for the Payback Method of Investment

question 29

Multiple Choice

What is the decision rule for the payback method of investment appraisal?

• A)Choose the project with the longest payback period.
• B)Choose the project with the shortest payback period.
• C)Choose the project where the payback period is longer than a hurdle period.
• D)Below a maximum period, accept the project with the shortest payback period.

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Definitions:

Hourly Basis

A method of compensation where individuals are paid for each hour of work performed, commonly used for part-time or temporary jobs.

Goal Commitment

The degree of determination and attachment an individual has towards achieving their set objectives.

Specific And Challenging Performance Goal

A well-defined objective that is both ambitious and requires significant effort to achieve, used to motivate and improve performance.

Do Your Best Goal

An objective that encourages individuals to perform to the highest of their abilities without specific performance benchmarks.