The payback method:

Multiple Choice

$0225$:$02$

varles the cutoff polnt with the market rate of Interest.

requires an arbltrary cholce of a cutoff polnt.

Is Irrelevant to the accept$/$reject decision

determines a cutoff point so that all projects accepted by the NPV rule will be accepted by the payback perlod rule,

determines a cutoff point egual to the polnt where all Initial capltai Investments have been fully depreclated