Q474
Other factors held constant, greater project liquidity is because of
A.
less project return
B.
greater project return
C.
shorter payback period
AnswerD.
greater payback period
Answer: Option C
Solution
Answer: Option C
Solution:
Other factors held constant, greater project liquidity is because of shorter payback period. The payback period is the cost of the investment divided by the annual cash flow. The shorter the payback, the more desirable the investment.