(Table: Payback Period) If Management Uses the Net Present

Multiple Choice

(Table: Payback Period) If management uses the net present value method and requires a two-year period to reach the payback period, then management will ____ the investment because the total benefits over the first two years are ____.

A) approve; less than $5,000
B) not approve; less than $5,000
C) approve; greater than $5,000
D) not approve; greater than $5,000