Identify Which One of the Following Is a Reason to Study

question 142

Multiple Choice

Identify which one of the following is a reason to study a simpler model such as the payback method.

• A)The payback method is the most popular method of capital budgeting.
• B)Simpler models are more accurate because they require less estimation.
• C)Simpler models might provide some useful information to supplement the discounted-cash-flows analysis.
• D)Simpler models are conceptually superior to discounted-cash-flows analysis.

---

Definitions:

Problem-Solving Experience

Exposure to and engagement with situations that require the identification and application of strategies to overcome obstacles and reach a desired outcome.

Winning

Achieving victory in a competition or contest.

Constructive Play

A form of play that involves building or creating something, often allowing children to develop cognitive and motor skills.

Imaginary Friend

A non-real friend created in the mind of a child, which can play a role in social and emotional development.