The Payback Period and Accounting Return on Investment Techniques

question 84

Multiple Choice

The payback period and accounting return on investment techniques:

• A)recognise the economic life of a project.
• B)ignore the time value of money.
• C)consider only the return for the first year of the investment.
• D)are more difficult to use than the net present value method.

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Definitions:

Overdose

The ingestion or exposure to a substance in quantities greater than are recommended or generally safe, leading to serious or potentially fatal symptoms.

Freezing Response

A behavioral reaction to a threatening stimulus characterized by immobility and the cessation of all movement, considered a survival mechanism.

Conditioned Emotional Response

The ability of a conditioned stimulus (CS) to elicit emotional reactions as a result of the association of the CS with a painful event.