1. Which one of the following statements about the discounted payback method is NOT true?
The discounted payback method represents the number of years it takes a project to recover its initial investment.
The discount payback method is a risk indicator.
The expected cash flows from a project are discounted at the cost of capital.
2. The discounted payback method calls for a project to be accepted if the payback period is greater than a target period.
In evaluating capital projects, the decisions using the NPV method and the IRR method may disagree
if the cash flows pattern is unconventional.
the projects are independent.
the projects are mutually exclusive.
both the cash flows pattern is unconventional the projects are mutually exclusive.