Which of the Following Is Correct About the Payback Method

question 28

Multiple Choice

Which of the following is correct about the payback method?

• A) It considers only the cash flows that occur during the payback period.
• B) It considers an asset's profitability.
• C) It is normally the only method used when deciding whether to invest in an asset.
• D) It is difficult to calculate.

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Definitions:

Metaphase

A stage of cell division where chromosomes align in the middle of the cell before being separated into each of the two daughter cells.

Paired Comparisons

A statistical technique that involves comparing each pair in a set of observations to assess differences.

Independent

Not influenced or controlled by others in matters of opinion, conduct, etc; thinking or acting for oneself.

Tukey's Method

A statistical test used to identify outliers in a data set.