A Weakness of the Net Present Value/payback Method Is That

question 1

Multiple Choice

A weakness of the net present value/payback method is that _____.

• A) it is a complicated calculation
• B) it is subjective
• C) it is directly related to the variability of returns from a project
• D) because it recognizes the riskiness of various projects, it can develop multiple outcomes

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Definitions:

Analytical Intelligence

One of the three types of intelligence according to Sternberg's triarchic theory, involving the ability to analyze, evaluate, judge, compare, and contrast information.

IQ Score

A measure of a person's intelligence as indicated by an intelligence test, normalized so that the average score within an age group is 100.

Average IQ

A statistical measure that represents a person's cognitive abilities in relation to the population average, with the population average set at a score of 100.

Broad Average

A general or wide-ranging statistical measure that represents the typical value of a set of numbers or quantities.