The choice to accept or reject projects based on the payback period is:
A)an objective decision.
B)as subjective decision.
C)will always give the same results as using the net present value method.
D)will always give the same results as using the internal rate of return method.

Question

Quizplus · Accepted Answer

The choice to accept or reject projects based on the payback period is a subjective decision as it does not take into account the time value of money and other factors that affect the profitability of a project. It may not always give the same results as using the net present value or internal rate of return methods, which are more objective and take a more comprehensive approach to evaluating the profitability of a project.

The Choice to Accept or Reject Projects Based on the Payback