Question

Based on the payback rule, an investment is acceptable if its payback is less than some pre-specified number of years.

a) True

b) False

Answer 1

The statement is False. The payback rule states that an investment is acceptable if its payback period is less than or equal to the pre-specified number of years.

Step-by-step explanation:

The statement is b) False. The payback rule states that an investment is acceptable if its payback period is less than or equal to the pre-specified number of years. So, if the payback period is less than the pre-specified number of years, the investment is acceptable.