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:

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different consumers, based on market segments, capacity to pay, or purchasing contexts.

Monopoly Power

The ability of a monopolist to significantly control market price or exclude competition in a particular market.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices to different buyers.

Elasticities of Demand

Measures of how responsive the quantity demanded of a good or service is to a change in its price, income levels, or other factors.