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:

Trademarks

Legal designations or symbols that represent the products or services of a company and are legally registered for exclusivity.

Copyrights

Legal protections granted to creators of original works, giving them exclusive rights to use, reproduce, and distribute their creations for a certain period.

Patents

Legal rights granted to inventors, giving them exclusive rights to use, make, and sell their inventions for a certain period.

Global Protection

Refers to international measures and strategies implemented to safeguard the environment, human rights, and economic interests on a worldwide scale.