Which of the Following Is a Disadvantage of the Payback

question 60

Short Answer

Which of the following is a disadvantage of the payback method? a. It overvalues the initial outlay.
B) It undervalues the initial outlay.
C) It overvalues future cash inflows.
D) It undervalues future cash inflows.
E) It is easy to compute but difficult to understand.

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Definitions:

Health Psychology

A subfield of psychology that provides psychology’s contribution to behavioral medicine.

Medical Psychology

A branch of psychology that studies the biopsychosocial factors affecting health and illness, and applies psychological principles to promote health and well-being.

Behavioral Medicine

A multidisciplinary field that integrates behavioral, psychosocial, and medical knowledge to understand, prevent, and treat physical illness.

Psychobiology

A field of science that studies how biological processes influence behaviors, thoughts, and emotions.