Which of the following statements is false?
A) If the payback period is less than the maximum acceptable payback period, accept the project.
B) If the payback period is greater than the maximum acceptable payback period, reject the project.
C) If the payback period is less than the maximum acceptable payback period, reject the project
D) Two of the above.

Question

Quizplus · Accepted Answer

Statement C is false. If the payback period is less than the maximum acceptable payback period, it indicates that the project is recovering its initial investment within the acceptable period, and hence it should be accepted.

Which of the Following Statements Is False