Which One of the Following Statements Is Correct Concerning the Payback

question 349

Multiple Choice

Which one of the following statements is correct concerning the payback period?

• A) An investment is acceptable if its calculated payback period is less than some pre-specified period of time.
• B) An investment should be accepted if the payback is positive and rejected if it is negative.
• C) An investment should be rejected if the payback is positive and accepted if it is negative.
• D) An investment is acceptable if its calculated payback period is greater than some pre-specified period of time.
• E) An investment should be accepted any time the payback period is less than the discounted payback period, given a positive discount rate.

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Definitions:

Power Acquisition

The act of gaining authority or control within an organization or group, often for influencing decisions.

Extraordinary Activities

Tasks or actions that are beyond the ordinary, often requiring remarkable effort or skill.

Difficulty of Replacement

refers to the challenges associated with finding a suitable substitute for an employee, resource, or component, often due to specialized skills or scarcity.

Influence Tactic

Strategies or methods used to persuade or direct others' behavior and decision-making in a desired direction.