alleryStart learning →Under discounted payback, when is a project accepted?
ADPB longer than life
BDPB equal to the IRR
CDPB within the set period
DDPB equal to zero
Answer & Solution
Correct answer: C. DPB within the set period
A DPB below the useful life or a predetermined period means the discounted outlay is recovered in time.
Keep practising Payback Period
Browse all Payback Period questions for CA Inter, or explore more Financial Management topics.
Related questions
Why may payback overlook a valuable long-life project?Rs 1,000 is invested, returning Rs 500 at the end of years 1 and 2. Payback?Energy payback period is the time over which what equals energy spent?Which of these is a simplified capital budgeting method?Surplus cash from a firm's present and past earnings is called what?The real value of capital budgeting lies mainly in doing what?Which technique expresses NPV as an annualised cash flow?When may one project have several possible IRRs?