Payback Is Frequently Used to Analyze Independent Projects Because

question 43

Multiple Choice

Payback is frequently used to analyze independent projects because:

• A)it considers the time value of money.
• B)all relevant cash flows are included in the analysis.
• C)it is easy and quick to calculate.
• D)it is the most desirable of all the available analytical methods from a financial perspective.
• E)it produces better decisions than those made using either NPV or IRR.

---

Definitions:

Restrictions

Rules or regulations that limit or restrict actions, activities, or movements.

Competitive Landscape

The dynamic environment in which a business operates, characterized by the number and strength of competitors, market conditions, and strategies employed.

Small Businesses

Enterprises with a small number of employees, limited revenue, and typically privately owned, operating with local focus.

Clayton Act

A U.S. antitrust law enacted in 1914, aiming to prevent anticompetitive practices in their incipiency, including monopolies and anti-competitive mergers.