The Principal Weakness of the Payback Method for Evaluating Proposed

question 64

Multiple Choice

The principal weakness of the payback method for evaluating proposed investments is that it does not:

• A)provide a way of ranking projects in order of desirability.
• B)consider cash flows that continue after the investment has been recovered.
• C)result in an easily understood "answer."
• D)recognize the time value of money.

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Definitions:

Conservation

A principle in cognitive development theory stating that physical quantities remain constant in spite of changes in their shape or appearance.

Scaffolding

An educational technique where a teacher adjusts the level of support provided to the student in the learning process, based on the student's performance.

Vocabulary

The set of words known and used by a person in a particular language.

"What's That?" Questions

Questions often asked by young children as they explore their environment and learn about the world around them through inquiry.