The Cash Payback Method Is Useful Because

question 32

Multiple Choice

The cash payback method is useful because

• A)it gives a broad indication when outlays will be recovered by the firm.
• B)it gives a specific date as to when outlays will be recovered by the firm.
• C)it avoids using complicated accounting data in capital budgeting decisions.
• D)it is easy to communicate the relation between cash received and ultimate profitability of a project to everyone in the organization.

---

Definitions:

Diffuse

To spread or disperse substances from regions of higher concentration to regions of lower concentration, often referring to gases or liquids.

Crystals

Solid materials whose constituents, such as atoms, molecules, or ions, are arranged in a highly ordered microscopic structure, forming a crystal lattice that extends in all directions.

Hypotonic Solution

A solution that has a lower solute concentration than the cytoplasm of a cell, causing cell swelling.

Gain Water

The process through which cells absorb water, which can happen in a hypotonic solution environment, leading to cell swelling or bursting in severe cases.