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    Discounted payback method

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    Which one of the following statements about the discounted payback method is true?

    A) The discounted payback technique tends to favor longer term projects over shorter term projects
    B) The discounted payback period method completely ignores cash flows that occur after the initial investment has been recouped
    C) The discounted payback period provides valid information about the projects liquidity and therefore is a helpful assessment of risk.
    D) All of the above choices are true statements
    E) Only choice A and B are true
    F) Only choice B and C are true
    G) Only choice A and C are true

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    Solution Summary

    Response discusses the discounted payback method

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