In Considering the Payback Period, ____

question 74

Multiple Choice

In considering the payback period, ____.

• A) the maximum period allowed by a firm is a specific time period based on objective criteria
• B) it considers the time value of money in determining the maximum allowable time period
• C) it gives some indication of a project's desirability from a liquidity viewpoint
• D) it is based on cash flows both during and after the payback period

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Definitions:

Unforeseeable

An event or condition that could not reasonably be predicted or expected.

Intervening Cause

An event that occurs after the defendant's act that contributes to the harm or damage, potentially absolving the defendant of liability because it breaks the chain of causation.

Reasonably Necessary

A standard requiring actions or measures that are logically appropriate and needed to achieve a certain goal or outcome, considering the circumstances.

Risk Of Harm

The potential for individuals to experience injury, damage, or loss as a result of certain actions or events.