Which of the Following Statements About the Payback Period Method

question 65

Multiple Choice

Which of the following statements about the payback period method is true?

• A)All other things being equal, a company would prefer a project with a longer payback period.
• B)The payback period method ignores the time value of money.
• C)The payback period method is more sophisticated and yields better decisions than the internal rate of return method.
• D)The payback period method takes into account the total stream of cash flows, which are difficult to predict.

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Definitions:

Faultline

The hypothetical dividing line that may split a group into subgroups based on one or more attributes, potentially leading to conflict or decreased group cohesion.

Demographic Characteristics

The statistical characteristics of human populations, such as age, race, gender, income, education, and employment, used for identifying and analyzing population segments.

Non-Overlapping Subgroups

Groups within a larger group that do not share common members, ensuring distinct and separate collaboration or functioning.

Organizational Founding Teams

The initial group of individuals who start a company or institution, often responsible for setting its vision, culture, and strategic direction.