The Payback Method Has All of the Following Advantages EXCEPT

question 80

Multiple Choice

The payback method has all of the following advantages EXCEPT it ____.

• A) considers the time value of money
• B) determines a firm's financial exposure
• C) is easy to calculate
• D) determines if the project under consideration will be able to replace the start-up costs.

---

Definitions:

Political Considerations

Factors that involve the influence of politics or political decision-making in a business, organizational, or governmental context.

Time Constraints

The limited periods available to complete a task or project, often influencing the efficiency and quality of work.

Limited Information

Situations or decisions made where the available data or knowledge is incomplete.

Perfect Rationality

The assumption or condition under which individuals make decisions that are entirely logical and optimize their self-interest.