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The payback period for a project is often calculated and then a decision about undertaking the...

The payback period for a project is often calculated and then a decision about undertaking the project is made after comparing this calculated payback period to a target payback period. Select all characteristics that apply to the target payback period.

The target payback period:

is usually determined by management.
can be expressed as a range of acceptable periods.
is irrelevant if the payback period for the project is less than three years.
is a number calculated as a fixed percentage of the life of the project.
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Answer #1

Answer:- is usually determined by management and can be expressed as a range of acceptable period

(Explanation:- Management usually set a target payback period for individual investments depending on their appetite of risk that is whether they are risk averse or risk taking. This target can be different for different projects because higher risk projects tends to have longer payback period and lower return projects tend to have a payback period which is short. Target payback period can be expressed as a range of acceptable period which means if the actual payback period falls under this range, the project can be accepted otherwise rejected.)

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