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:

Skeptical

Having an attitude of doubt or a disposition to incredulity either in general or toward a particular object.

Oversimplify

To reduce something to its simplest form, often to the point of misrepresenting or misunderstanding the complexity of the subject.

Theories

Systematic sets of ideas or principles that explain phenomena or concepts, typically developed through observation and experimentation.

Norms

Shared standards of behavior that are considered acceptable within a group or society.