Which of the Following Is a Correct Statement About the Discounted

Multiple Choice

Which of the following is a correct statement about the discounted payback period (DPB) technique that is used to evaluate capital budgeting projects?

A) To compute a project's DPB, simply add up the unadjusted expected cash flows for each year until the cumulative value equals the amount that is initially invested.
B) According to DPB, a project should be accepted when its discounted payback period is greater than its useful life.
C) The DPB does not provide information about the liquidity of a project.
D) The DPB method considers the time value of money.
E) To compute a project's DPB, its internal rate of return (IRR) must be known.