The period of time within which an investment made for a project is recovered by the cash inflows of the project is known as the O A. Period of return. O B. Payback period. O C. Discounted cashflow period. O D. Period of gain. QUESTION 8 If stock prices follow a sub martingale process, we would expect returns on average to be O A. Positive. O B. Negative. O C. Zero. O D. Equal to the risk-free rate. The Internal Rate of Return (IRR) criterion for project acceptance, under theoretically infinite funds, is to accept all projects which have O A. IRR equal to the cost of capital. B. IRR greater than the cost of capital. C. IRR less than the cost of capital. O D.IRR equal to zero. QUESTION 10 A project may be regarded as high risk when O A. It has smaller variance of outcome and a high initial investment. O B. It has larger variance of outcome and high initial investment. O C. It has smaller variance of outcome and a low initial investment. D. It has larger variance of outcome and low initial investment