If the Traditional Payback Period Method Is Used to Evaluate

Multiple Choice

If the traditional payback period method is used to evaluate a capital budgeting project, the project is considered acceptable if _____. 

A) the total cash inflows yield a rate of return more than the expected rate of return from the project
B) the payback period is longer than the life of the project
C) there are no cash outflows during the payback period
D) discounted value of cash inflows is less than the initial investment
E) the payback period is less than the maximum cost-recovery time established by the firm