All of the Following Are Criticisms of the Payback Period

question 1

Multiple Choice

All of the following are criticisms of the payback period criterion EXCEPT

• A) time value of money is not accounted for.
• B) cash flows occurring after the payback are ignored.
• C) it deals with accounting profits as opposed to cash flows.
• D) None of the above; they are all criticisms of the payback period criteria.

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Definitions:

Supply

The total amount of a good or service that is available for purchase at various prices in a given market.

Economy

A system of production, distribution, and consumption of goods and services in a particular geographic region.

Demand

Demand is an economic principle referring to a consumer's desire and willingness to pay a price for a specific good or service.

Supply

The total amount of a specific good or service that is available to consumers, often influenced by the price as well as other factors.