The Payback Method of Analysis Ignores Which One of the Following

question 86

Multiple Choice

The payback method of analysis ignores which one of the following?

• A)Initial cost of an investment
• B)Arbitrary cutoff point
• C)Cash flow direction
• D)Time value of money
• E)Timing of each cash inflow

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Definitions:

Motion To Dismiss

In a civil case, a request by the defendant that asks a judge or a court to dismiss the case because even if all the allegations are true, the plaintiff is not entitled to any legal relief. Also called demurrer.

Lead Paint

A type of paint that contains lead, a heavy metal, which can be toxic when ingested or inhaled, especially harmful to children.

Identical Product

A product that is exactly the same in every characteristic and feature as another product.

Sophisticated-User

A legal defense that releases a manufacturer from liability if the user of their product is deemed to have sufficient expertise to appreciate the risks associated with the product's use.