A Project's Payback Period Is Determined to Be Four Years

Multiple Choice

A Project's payback period is determined to be four years.If it is later discovered that additional cash flows will be generated in years five and six, then:

A) The Project's payback period will be reduced
B) The Project's payback period will be increased
C) The Project's payback period will be unchanged
D) The discount rate must be known to determine whether the payback period changes