Which of the Following Is a Drawback of the Payback

question 62

Multiple Choice

Which of the following is a drawback of the payback period?

• A) It ignores a project's total profitability.
• B) It uses a set discount rate.
• C) It considers total profitability, requiring the forecasting of all future cash flows.
• D) It uses before-tax cash flows rather than after-tax cash flows.
• E) It uses operating income rather than cash flows.

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Definitions:

Parasitic Protozoan

Single-celled organisms that live and feed on other living organisms, often causing diseases.

Trichomoniasis

A sexually transmitted infection caused by the parasite Trichomonas vaginalis.

Crabs

An STD (sexually transmitted disease) caused by the infestation of the pubic hair by a louse.

Cervicitis

An inflammation of the cervix, often caused by infection and characterized by symptoms like abnormal vaginal discharge and pain during intercourse.