Two Investments Have the Same Total Cash Inflows and the Same

Multiple Choice

Two investments have the same total cash inflows and the same payback period. Therefore:

A) These two investments are equally desirable.
B) These two investments must be identical in terms of the present value of the cash inflows.
C) The payback period method can help decision makers choose between these two investments.
D) One pattern of cash inflows may, in a present value sense, be preferable to the other investment's pattern of cash inflows.
E) Most likely, these two investments required approximately the same initial investment.