The Regular Payback Method Has a Number of Disadvantages, Some

question 98

Multiple Choice

The regular payback method has a number of disadvantages, some of which are listed below. Which of these items is NOT a disadvantage of this method?

• A) lack of an objective, market-determined benchmark for making decisions
• B) ignores cash flows beyond the payback period
• C) does not directly account for the time value of money
• D) does not provide any indication regarding a project's liquidity

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Definitions:

Peritoneal Dialysis

A treatment for kidney failure that uses the lining of the abdomen, called the peritoneum, as a natural filter to clear waste from the blood.

Dextrose

A simple sugar that's a form of glucose, often used in medical settings as an energy source.

Extra Fluid

The accumulation of excess body fluids, often leading to swelling, commonly in cases of heart failure or kidney disease.

ECV Deficit

Stands for Extracellular Volume Deficit, which refers to a condition where there is a shortage of fluid outside the cells, affecting bodily functions.