Which one of the following statements about the discounted payback method is NOT true?
A) The discounted payback method represents the number of years it takes a project to recover its initial investment.
B) The discounted payback method calls for the project to be accepted if the payback period is greater than a target period.
C) The discount payback method is a risk indicator.
D) The expected cash flows from the project are discounted at the cost of capital.
Answer: B
1 comments:
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