The Payback Period Can Be Considered Justified on the Basis

question 100

Multiple Choice

The payback period can be considered justified on the basis of:

• A)it can account for the risk of the project.
• B)it can account for the time value of the project.
• C)it can account for the return on investment.
• D)it can account for the objective rationale of the project.

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Definitions:

Breaking Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain for a business.

Monopolistic Competitor

A firm in a market structure where many companies sell products that are similar but not identical, allowing for some control over prices.

Monopolistic Competitors

Companies in a market where many sellers offer products that are similar but not identical, giving each some degree of market power.

Small Companies

Businesses with a smaller scale of operations, employee base, and market presence, often characterized by lower revenues than larger corporations.