Question
7. The Payback Period can be described as the number of periods it takes for a project to return the dollar amount of the required
7. The Payback Period can be described as the number of periods it takes for a project to return the dollar amount of the required investment. The Discounted Payback Period can be described as the number of periods it takes for a project to return the same current purchasing power as the dollar amount of the required investment. a) True b) False
8. As long as the firm's WACC > 0, the Discounted Payback Periods will be higher than the Payback Periods for any given project. a) True b) False
9. the Profitability Index is a measure of the geometric average rate of return on a project. a) True b) False
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