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8. True or False: If PBP = 5, then DPBP > 5. A. True B. False 9. True or False: If PWAPW, > $0 and PBPA > PBP, then DPBPA > D

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Answer #1

8) True,

PBP stands for payback period and is defined as the time period required to recover the invested money either in a firm or a commodity.

While DPBP stands for discounted payback period and is defined as the time period required to recover the invested money with time value of money.

The statement is true because the time value of money means, the value of same amount of money has more value in future than present, so DPBP can be greater than or equal to the PBP. As DPBP can account for more return than PBP to fulfill time value of money.

9)true, because

96 PWA > PWB > $0 (ВР, > Pв PWA a Invested money in - Pub - Invested money in A B is greater in any can be greater for of Inv

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