Question：The following statements relate to an investment project that has been discounted at rates of 10% and 20%.
Which of the statements are true?
A. The non-discounted payback period will be shorter than the discounted payback period.
B. The non-discounted payback period will be longer than the discounted payback period.
C. The discounted payback period at 20% will be longer than the discounted payback period at 10%.
D. The discounted payback period at 10% will be longer than the discounted payback period at 20%.
The correct answers are:
The discounted payback period at 20% will be longer than the discounted payback period at 10%
and
The non-discounted payback period will be shorter than the discounted payback period
are true.