The Cash Payback Technique

question 2

Multiple Choice

The cash payback technique

• A) should be used as a final screening tool.
• B) can be the only basis for the capital budgeting decision.
• C) is relatively easy to compute and understand.
• D) considers the expected profitability of a project.

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Definitions:

Ordinary Care

The level of care that a reasonably prudent person would exercise in a similar situation to prevent harm.

Damaged

Refers to the physical harm or deterioration suffered by goods, property, or reputation.

Lawnmower

A machine equipped with blades for cutting grass on lawns.

Gift Inter Vivos

A gift made voluntarily and without consideration during the giver's lifetime, distinct from a testamentary gift made through a will.