A Weakness of the Payback Period Is That It Disregards

question 22

Multiple Choice

A weakness of the payback period is that it disregards ____.

• A) projects with shorter payback periods
• B) cash flows during the payback period
• C) start-up costs
• D) the time value of money

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Definitions:

Supreme Court

The highest judicial court in a country or state, which has the ultimate authority in interpreting the law and deciding on the most significant legal issues.

Natural Justice

The legal principle requiring fairness in legal processes, including the right to a fair hearing and the rule against bias.

Procedural Fairness

Rules of natural justice that a hearing must follow to ensure that the process is fair to all parties involved.

Fundamental Justice

The basic principles of fairness and justice that are essential to the administration of laws and the operation of legal systems.