Four of the Following Statements Are Truly Disadvantages of the Regular

question 50

Multiple Choice

Four of the following statements are truly disadvantages of the regular payback method,but one is not a disadvantage of this method.Which one is NOT a disadvantage of the payback method?

• A) Lacks an objective,market-determined benchmark for making decisions.
• B) Ignores cash flows beyond the payback period.
• C) Does not directly account for the time value of money.
• D) Does not provide any indication regarding a project's liquidity or risk.
• E) Does not take account of differences in size among projects.

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Definitions:

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to and removing waste from the fetus.

Germinal Stage

The period of development between conception and the implantation of the embryo.

Diethylstilbestrol

A synthetic estrogen introduced in the late 1930s to treat various medical conditions, later found to cause cancer and other problems in the daughters of women who took it while pregnant.

Teratogens

Agents capable of interrupting the normal development of an embryo or fetus, resulting in serious developmental disorders or birth defects.