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:

Grain

A small, hard, dry seed harvested from cereal plants or grasses, used for food.

Quantities

Refers to the specific amounts or numbers of items, often used in the context of purchases, manufacturing, or inventory.

Jurisdiction

The legal authority granted to a court or legal body to administer justice within a certain geographic area or over certain types of legal cases.

Security Interest

A legal claim or lien on property, either personal or real, granted to a creditor to secure payment of a debt or performance of some other obligation.