A Weakness of the Net Present Value/payback Method Is

question 24

Multiple Choice

A weakness of the net present value/payback method is:

• A)It is a complicated calculation
• B)It is subjective
• C)It is directly related to the variability of returns from a project
• D)Because it recognizes the riskiness of various projects, it can develop multiple outcomes.

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Definitions:

Hierarchy of Effects

A model that outlines the sequential steps consumers typically go through in their purchasing decisions, from awareness to action.

CoolMax

A brand of fabric known for its moisture-wicking properties, designed to keep the body cool and dry by drawing sweat away from the skin.

DuPont

A science and technology company that was originally founded in 1802 as a gunpowder mill and has since diversified into various sectors including materials, chemicals, and healthcare.

Trial Stage

A phase in the product adoption process where consumers first use a product on a limited basis to assess its value.