The discounted payback period rule:
A)considers the time value of money.
B)discounts the cutoff point.
C)ignores uncertain cash ﬂows.
D)is preferred to the NPV rule.
E)None of the above.

Question

Quizplus · Accepted Answer

The discounted payback period rule considers the time value of money by using a discounted cash flow approach, unlike the regular payback period rule that ignores the time value of money.

The Discounted Payback Period Rule