Under the Payback Method of Analysis

Multiple Choice

Under the payback method of analysis:

A) The initial cash outlay is ignored.
B) The cash flow in year 3 is ignored if the required payback period is 4 years.
C) A project's initial cost is discounted.
D) The cash flow in year 2 is valued just as highly as the cash flow in year 1 as long as the required payback period is 3 years or more.
E) A project will be acceptable whenever the payback period exceeds the pre-specified number of years.