The Disadvantages of the Payback Approach Include

question 42

Multiple Choice

The disadvantages of the payback approach include:

• A)cash flows after the payback period are ignored in the calculation
• B)payback ignores the time value of money
• C)payback fails to provide an objective decision-making criterion
• D)all of these

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Definitions:

Word Association

A psychological test in which subjects are presented with a series of words and asked to respond immediately with the first word that comes to mind.

Jung

Refers to Carl Gustav Jung, a Swiss psychiatrist and psychoanalyst who founded analytical psychology, known for his concepts of the collective unconscious and archetypes.

Galton

refers to Francis Galton, a 19th-century English polymath who made significant contributions to fields such as statistics, psychology, and anthropology.

Rapaport

In the context of psychology, David Rapaport was a significant figure in the development of psychoanalytic theory and practice.