Which of the Following Is a Limitation of the Payback

question 28

Multiple Choice

Which of the following is a limitation of the payback period method?

• A)It ignores the time value of money.
• B)It ignores cash flows.
• C)It fails to consider the salvage value.
• D)It fails to consider the initial net cost of the asset.

---

Definitions:

Unique Qualities

Distinctive characteristics or features that set someone or something apart from others.

Educational

Pertaining to the process of teaching and learning, especially within a school or academic environment.

Self-reward

A process of giving oneself a reward to increase or maintain motivation for completing tasks or achieving goals.

Study Habits

The practices and routines that individuals use to acquire and retain information effectively for academic purposes.