Which of the following statements is true of a project with a long payback period?
A) A long payback period increases the project's risk.
B) A long payback period ensures enough liquidity for the firm.
C) A long payback period ensures positive net present value of the project.
D) A long payback period results in the expected rate of return being more than the internal rate of return.
E) A long payback period results in the terminal value of the project being higher than the present value of its cash outflows.
Correct Answer:
Verified
Q58: Which of the following statements is true
Q59: Modified internal rate of return is the
Q60: The multiple internal rate of return (MIRR)
Q61: Which of the following methods of capital
Q62: Which of the following statements is true
Q64: Which of the following statements is true
Q65: Which of the following statements is true
Q66: With the improvement in the technology and
Q67: An investment project has an initial cost,
Q68: Discounted payback's primary advantage over traditional payback
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents