The payback period rule accepts all projects for which the payback period is
A)greater than the cut-off value.
B)less than the cut-off value.
C)positive.
D)an integer.

Question

Quizplus · Accepted Answer

The payback period rule suggests that a project should be accepted if its payback period is lower than a pre-defined cut-off value. Therefore, option B is correct as it states that projects with a payback period lower than the cut-off value should be accepted. The other options are incorrect as they present incorrect or incomplete information about the payback period rule.

The Payback Period Rule Accepts All Projects for Which the Payback