The Following Are Disadvantages of Using the Payback Rule Except

question 31

Multiple Choice

The following are disadvantages of using the payback rule except the rule

• A)ignores all cash flow after the cut-off date.
• B)does not use the time value of money.
• C)is easy to calculate and use.
• D)does not have the value additivity property.

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Definitions:

Director of Finance

A senior executive responsible for managing the financial actions of a company, including planning, risk management, and financial reporting.

Gender

A social construct that encompasses a range of identities, expressions, and roles assigned to individuals based on perceived sex differences, beyond biological attributes.

Human Relations

The interactions and relationships between people, especially in the workplace or other organizational settings.

Socialization Process

The method through which individuals learn and adopt the norms, values, and behaviors appropriate to their society or group.