Why Is Payback Often Used as the Sole Method of Analyzing

question 9

Multiple Choice

Why is payback often used as the sole method of analyzing a proposed small project? 

• A) Payback considers the time value of money. 
• B) All relevant cash flows are included in the payback analysis. 
• C) The benefits of payback analysis usually outweigh the costs of the analysis. 
• D) Payback is the most desirable of the various financial methods of analysis. 
• E) Payback is focused on the long-term impact of a project. 

---

Definitions:

Neural Impulses

Electrical signals that travel along the neurons, allowing for communication between different parts of the body and the brain.

Peripheral Nervous System

Part of the nervous system that consists of the nerves and ganglia outside of the brain and spinal cord, responsible for connecting the central nervous system (CNS) to limbs and organs.

Axons

Long, slender projections of a neuron that transmit electrical impulses away from the neuron's cell body to other neurons, muscles, or glands.

Nerve

A bundle of nerve fibers (axons and sometimes dendrites) in the peripheral nervous system.