A Major Disadvantage of the Payback Period Method Is That

question 23

Multiple Choice

A major disadvantage of the payback period method is that it

• A) Is useless as a risk indicator.
• B) Ignores cash flows beyond the payback period.
• C) Does not directly account for the time value of money.
• D) All of the answers above are correct.
• E) Only answers b and c are correct.

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Definitions:

Height

The distance from the base of something to its top.

Predicted Vital Capacity

An estimated measurement of the maximum amount of air a person can expel from the lungs after a maximum inhalation.

Height

The measurement of someone or something from head to foot or from base to top.

Breathing Rate

The number of breaths taken within a set amount of time, an important aspect of respiratory health.