A project has a payback period of five years and the firm employs a 10 percent cost of capital. Which of the following statements is correct concerning this Project's discounted payback?
A) discounted payback will increase if the Project's IRR is less than 10 percent.
B) discounted payback will decrease if the Project's IRR exceeds 10 percent.
C) discounted payback will exceed five years.
D) discounted payback will be less than five years.
Answer: C) discounted payback will exceed five years.
You might also like to view...
Prestige LLC, a small company that manufactures specialty cereals and energy bars, wants to launch a "green marketing" program in response to heightened consumer awareness about environmental issues
What should the company do to maximize the program's chances of being successful? A) demonstrate that the products will benefit both customers and the society in the long term B) emphasize benefits to the consumer rather than environmental benefits C) focus on the efforts and costs incurred by the company to bring these "green" products to consumers D) engage in "greenwashing" to highlight the environmental benefits of the product E) explain the rules and regulations laid out by governmental agencies to protect the environment
If an attorney asks a paralegal to "shepardize" a case, that attorney wants to be sure the case:
A) is published. B) is current. C) is not in a pocketpart. D) is being overturned.