The Cash Payback Method Is Useful Because

question 32

Multiple Choice

The cash payback method is useful because

• A)it gives a broad indication when outlays will be recovered by the firm.
• B)it gives a specific date as to when outlays will be recovered by the firm.
• C)it avoids using complicated accounting data in capital budgeting decisions.
• D)it is easy to communicate the relation between cash received and ultimate profitability of a project to everyone in the organization.

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Definitions:

Flexibility

The quality of being adaptable or willing to adjust to new conditions or situations.

Flexible

Capable of adapting to new, different, or changing requirements or situations with ease.

Rigid

Characterized by inflexibility or strictness in structures, systems, or attitudes, potentially hindering adaptability or progress.

Genuine

refers to being truly what something is said to be; authentic and sincere in one's actions, intentions, or character.