Why Is the Payback Period Often Criticized

question 27

Multiple Choice

Why is the payback period often criticized?

• A)It requires trial and error to determine the quantitative amount on which to make a decision.
• B)It ignores the cash flows after the end of the payback period.
• C)It requires the estimate of a hurdle rate that is subject to uncertain economic effects.
• D)It is based on accounting income, which most likely differs from the actual cash flows.

Understand the methodologies and technologies in market research, including their cost implications.

Analyze the impact of marketing efforts on sales through various analytical tools.

Understand the process and importance of forecasting in marketing.

Recognize ethical considerations and privacy concerns in gathering and utilizing data.

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Definitions:

Behaviorists

Behaviorists focus on observable behaviors and the ways they're learned, downplaying the role of internal thoughts and feelings.

Gestalt Psychologists

Psychologists who believe that human perception and behavior should be understood as organized wholes, rather than the sum of their parts.

Observable Behaviors

Actions or reactions of an organism that can be seen and measured.

Mental Experiences

Phenomena that occur in the mind, such as thoughts, feelings, and perceptions.