The Cash Payback Method Is Frequently Used as a Screening

question 77

True/False

The cash payback method is frequently used as a screening tool but it does not take into consideration the profitability of a project.

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Definitions:

Financial Data

Numerical information related to monetary transactions, financial status, and performance of a company, used for analysis and decision-making.

Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term liquidity.

Financial Data

Numeric information representing the financial performance, position, and cash flows of a company.

Current Ratio

A metric that evaluates how well a business can handle its short-term financial commitments due within a year.