Which One of the Following Statements Is Correct

question 22

Multiple Choice

Which one of the following statements is correct?

• A)A longer payback period is preferred over a shorter payback period.
• B)The payback rule states that you should accept a project if the payback period is less than one year.
• C)The payback period ignores the time value of money.
• D)The payback rule is biased in favour of long-term projects.
• E)The payback period considers the timing and amount of all of a project's cash flows.

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Definitions:

Wage-Rate Compression

Compression of differentials between job classes, particularly the differential between hourly workers and their managers.

Employee Morale

The overall outlook, satisfaction, and confidence that employees feel towards their work and workplace environment.

Absenteeism

The habitual or frequent absence from work or duties without good reason, which can impact organizational productivity and morale.

Indirect Compensation

Benefits given to employees that are not paid directly as cash but contribute to their overall remuneration, such as insurance or retirement plans.