A Significant Disadvantage of the Payback Period Is That It

question 116

Multiple Choice

A significant disadvantage of the payback period is that it

• A) is complicated to explain.
• B) increases firm risk.
• C) does not properly consider the time value of money.
• D) provides a measure of liquidity.

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Definitions:

Credit for Prior Experience

Recognition of skills, knowledge, or competencies gained through work or life experiences, often applied toward academic or professional certification requirements.

Learning Disability

A neurological disorder that affects an individual's ability to receive, process, store, or respond to information.

Resourceful Attitude

An approach characterized by the ability to find quick and clever ways to overcome difficulties, often using limited resources creatively.

Extended Time

A modification in timelines to accommodate individual needs, particularly in educational or testing contexts, allowing more time to complete tasks.