Everything Else Equal, a Project That Has a Long Traditional

Multiple Choice

Everything else equal, a project that has a long traditional payback period (PB) _____. 

A) has greater implied risk than a project that has a shorter PB
B) generally ensures the firm has enough liquidity to survive for a fairly long period of time
C) must have a positive net present value (NPV)
D) has an expected rate of return that is greater its internal rate of return
E) results in a terminal value that is greater than the present value of its cash outflows