Which One of the Following Is the Primary Advantage of the Payback

question 306

Multiple Choice

Which one of the following is the primary advantage of the payback method of analysis?

• A) Easy to compute.
• B) Inclusion of time value of money considerations.
• C) Liquidity bias.
• D) Arbitrary cut-off point.
• E) Current market rate of return considerations.

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Definitions:

SCM Systems

Supply Chain Management systems, software solutions designed to manage and optimize the flow of goods, services, and information from supplier to customer.

Interorganizational IS

Information systems that facilitate communication and transaction between different organizations, enhancing collaboration.

Vertical Integration

Vertical Integration is a strategy whereby a company owns or controls its suppliers, distributors, or retail locations to control its value or supply chain.

Supply Chain

The flow of materials, information, money, and services from suppliers of raw materials through factories and warehouses to the end customers.