Which of the Following Statements Is NOT a Disadvantage of the Regular

question 50

Multiple Choice

Which of the following statements is NOT a disadvantage of the regular payback method?

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

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Definitions:

Parathyroid

Small endocrine glands located close to the thyroid gland.

Pituitary

A small gland at the base of the brain that produces hormones influencing growth, metabolism, and reproductive functions.

Adrenal

Pertaining to the adrenal glands, which sit atop each kidney.

Pancreas

An organ that secretes insulin and pancreatic digestive juice.