Payback Is Considered an Unsophisticated Capital Budgeting Technique, and as Such

question 81

Multiple Choice

Payback is considered an unsophisticated capital budgeting technique, and as such

• A) gives no consideration to risk exposure.
• B) gives no consideration to the timing of cash flows and therefore the time value of money.
• C) gives some implicit consideration to the timing of cash flows and therefore the time value of money.
• D) does consider the timing of cash flows and therefore gives explicit consideration to the time value of money.

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Definitions:

Distal Stimulus

An object or event in the external world that produces sensory input.

Sensation

The process of sensing our environment through touch, taste, sight, sound, and smell, which are then interpreted by our brains.

Perception

Perception is the process by which individuals organize and interpret sensory information to understand their environment and interactions.

Detection

The act or process of discovering or identifying the presence of something concealed or unknown.