Which of the following is NOT true about the discounted payback period?

Question

Quizplus · Accepted Answer

The statement "Projects with discounted payback periods beyond the project lifetime will be accepted" is not true about the discounted payback period. The discounted payback period requires all cash flows to be discounted back to their present value, and if the project's discounted payback period extends beyond the project lifetime, it means that the project is not expected to generate enough cash flow to recoup the initial investment during its lifetime. Therefore, such projects will not be accepted.

Which of the Following Is NOT True About the Discounted