The Payback Period Rule Accepts All Investment Projects in Which

question 26

Multiple Choice

The payback period rule accepts all investment projects in which the payback period for the cash flows is:

• A) greater than or equal to the cut-off point.
• B) greater than the cut-off point.
• C) less than the cut-off point.
• D) positive.

---

Definitions:

Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or a designated entity from the drawer's account.

Order Paper

A negotiable instrument that is payable to a specific person or their order, requiring endorsement for transfer.

Indorsed in Blank

Pertains to a legal document, typically a negotiable financial instrument, that has been signed by the endorser but without specifying the endorsee, allowing any holder to claim the document's value.

Negotiated

A process where two or more parties discuss and come to a mutual agreement on terms and conditions, often in the context of contracts or agreements.