Which of the Following Circumstances Might Contribute to the Usefulness

question 47

Multiple Choice

Which of the following circumstances might contribute to the usefulness of the discounted payback method?

• A) uncertain project life
• B) multiple changes in the signs of cash flows
• C) mutually exclusive projects
• D) capital rationing

---

Definitions:

Conditions

Major terms of a contract.

Warranty

A guarantee from a seller to a buyer that a product or service meets certain quality and performance standards.

Mitigate Loss

Actions taken to reduce the severity or impact of a loss or damage, often a duty in contractual contexts.

Consideration

In contract law, something of value that is given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.