A Firm May Choose a Project with a Rapid Payback

Multiple Choice

A firm may choose a project with a rapid payback period rather than one with a larger net present value because:

A) it may have a poor cash position and limited access to outside finance.
B) no reason is necessary,as it would never happen.
C) the payback period is a superior means of evaluating projects.
D) the required rate of return may not be readily determinable.