Q453
Other factors held constant, but lesser project liquidity is because of
A.
shorter payback period
B.
greater payback period
AnswerC.
less project return
D.
greater project return
Answer: Option B
Solution
Answer: Option B
Solution:
Other factors held constant, but lesser project liquidity is because of greater payback period. Payback period in capital budgeting refers to the period of time required to recoup the funds expended in an investment, or to reach the break-even point.