Answer:
Statement is false
Explanation:
Cutoff date refers to the time period within which a particular project returns back the initial investment in the form of cash inflows. Payback period of an investment should fall below this date.
As such, payback of an investment gives weight to cash flows occurring before the cutoff date. So, the statement is incorrect initial investment would have been recovered before cutoff date.
The payback does not gives too much weight to cash flows that occur after the cutoff date. The answer is false.
This is the time frame that is required for the investment to be returned after the investment period has elapsed.
Hence the answer to this question is false because the period is known to give weight on cash flows after the cutoff date.
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