Two Investments with Exactly the Same Payback Periods Are Not

question 113

True/False

Two investments with exactly the same payback periods are not equally valuable to an investor because the timing of net cash flows may be different.

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Definitions:

Truth Table

A mathematical table used in logic to determine whether a compound statement is true or false, depending on the truth values of its components.

Modus Tollens (MT)

A form of logical argument that concludes the inverse of an antecedent from the negation of its consequent in a conditional statement.

Modus Ponens (MP)

A logical reasoning pattern that asserts if a given premise is true, then the consequent logically follows; structured as "If P, then Q. P, therefore Q."

Modus Tollens (MT)

A form of logical argument where the antecedent is denied after deriving an absurdity or contradiction from its assumption, typically structured as "If P, then Q. Not Q, therefore not P."