Which of the Following Is NOT a Limitation of the Payback

question 52

Multiple Choice

Which of the following is NOT a limitation of the payback rule?

• A) It does not consider the time value of money.
• B) It is difficult to calculate.
• C) It lacks a decision criterion that is economically based.
• D) It does not consider cash flows occurring after the payback period.

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Definitions:

Disaffirmance

The legal right of a party, typically a minor or someone under duress at the time of contract formation, to renounce or void a contract.

Misrepresentation of Age

The act of intentionally providing false information about one's age, typically for the purpose of accessing age-restricted goods, services, or privileges.

Intoxicated

A state of being impaired, typically due to the consumption of alcohol or drugs, affecting one's cognitive and physical abilities.

Voidable Option

A contract provision that allows one party to void the contract under certain circumstances, making it enforceable at the discretion of one party.