Which of the Following Statements Concerning Payback Analysis Is True

question 34

Multiple Choice

Which of the following statements concerning payback analysis is true?

• A)An investment with a shorter payback is preferable to an investment with a longer payback.
• B)The payback method ignores the time value of money concept.
• C)The payback method and the unadjusted rate of return are different approaches that will not consistently lead to the same conclusion.
• D)All of the other answers are correct.

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Definitions:

Polarized Capacitors

Capacitors that are sensitive to polarity.

DC

Direct Current, a type of electrical current where the flow of electric charge is in one direction.

Series Connection

A method of connecting electrical components end-to-end, so the same current flows through each component.

Total Capacitance

The sum of individual capacitances in a circuit when connected in parallel, reducing when capacitors are in series, affecting the circuit's ability to store charge.