Measure of the geometric average rate of return on project

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Reference no: EM131491303

1. The Payback Period can be described as the number of periods it takes for a project to return the dollar amount of the required investment. The Discounted Payback Period can be described as the number of periods it takes for a project to return the same current purchasing power as the dollar amount of the required investment.

a) True

b) False

2. As long as the firm's WACC > 0, the Discounted Payback Periods will be higher than the Payback Periods for any given project.

a) True

b) False

3. the Profitability Index is a measure of the geometric average rate of return on a project.

a) True

b) False

Reference no: EM131491303

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