Which of the Following Statements Is CORRECT

question 43

Multiple Choice

Which of the following statements is CORRECT?

• A) One drawback of the regular payback is that this method does not take account of cash flows beyond the payback period.
• B) If a project's payback is positive, then the project should be accepted because it must have a positive NPV.
• C) The regular payback ignores cash flows beyond the payback period, but the discounted payback method overcomes this problem.
• D) One drawback of the discounted payback is that this method does not consider the time value of money, while the regular payback overcomes this drawback.
• E) The shorter a project's payback period, the less desirable the project is normally considered to be by this criterion.

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Definitions:

Episodic Memory

The type of long-term memory that involves the recollection of specific events, situations, and experiences.

Script

A schema for an event, often containing information about physical features, people, and typical occurrences.

Implicit Memory

Memory that enables people to perform tasks without conscious awareness of these previous experiences.

Episodic Memory System

The episodic memory system is a part of the brain's memory system responsible for storing specific events or episodes that occurred at a particular time and place.