Which of These Is a Disadvantage of the Payback Method

question 9

Multiple Choice

Which of these is a disadvantage of the payback method of investment evaluation?

• A) It disregards the time value of money.
• B) It disregards the post-payback-period cash flows.
• C) It is based on cash flows.
• D) A and B

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Definitions:

Complex Environment

An environment characterized by various interconnected and dynamic elements and variables, which can influence or change outcomes within it.

Neuronal Transmission

The process by which neurons communicate with each other through electrical and chemical signals to transmit information throughout the nervous system.

Scientific Theories

Well-substantiated explanations of the natural world that are based on a body of evidence and can make predictions about natural phenomena.

Abnormal Psychology

A branch of psychology that studies unusual patterns of behavior, emotion, and thought, which may or may not be understood as precipitating a mental disorder.