The Payback Method Is Criticized on the Grounds That It

question 44

Multiple Choice

The payback method is criticized on the grounds that it

• A) ignores obsolescence factors.
• B) ignores the cost of an investment.
• C) is complicated to use.
• D) ignores the time value of money.

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Definitions:

SWOT Analysis

A method of determining internal strengths and weaknesses and external opportunities and threats.

Strengths and Weaknesses

An assessment of the positive attributes and areas for improvement within an organization, project, or process, often used in strategic planning.

Maquiladoras

Mexican factories located along the U.S.–Mexico border that receive preferential tariff treatment.

Tariffs

Taxes imposed by a government on imports or exports of goods.