Which of the following statements is CORRECT? O a. One drawback of the payback criterion is that this method does not take account of cash flows beyond the payback period. O b. The shorter a project's payback period, the less desirable the project is normally considered to be by this criterion. OcOne drawback of the discounted payback is that this method does not consider the time value of money, while the regular payback overcomes this drawbac Od. If a project's payback is positive, then the project should be accepted because it must have a positive NPV. Oe. The regular payback ignores cash flows beyond the payback period, but the discounted payback method overcomes this problem.

Advanced Engineering Mathematics
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Author:Erwin Kreyszig
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Which of the following statements is CORRECT?
O a. One drawback of the payback criterion is that this method does not take account of cash flows beyond the payback period.
Ob. The shorter a project's payback period, the less desirable the project is normally considered to be by this criterion.
OcOne drawback of the discounted payback is that this method does not consider the time value of money, while the regular payback overcomes this drawback.
Od. If a project's payback is positive, then the project should be accepted because it must have a positive NPV.
Oe. The regular payback ignores cash flows beyond the payback period, but the discounted payback method overcomes this problem.
Transcribed Image Text:Which of the following statements is CORRECT? O a. One drawback of the payback criterion is that this method does not take account of cash flows beyond the payback period. Ob. The shorter a project's payback period, the less desirable the project is normally considered to be by this criterion. OcOne drawback of the discounted payback is that this method does not consider the time value of money, while the regular payback overcomes this drawback. Od. If a project's payback is positive, then the project should be accepted because it must have a positive NPV. Oe. The regular payback ignores cash flows beyond the payback period, but the discounted payback method overcomes this problem.
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