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:

Legal Concept

Fundamental principles that form the basis of law, defining rights, duties, and legal responsibilities.

Competence

Possessing the necessary skills, knowledge, and ability to perform a specific task or role effectively.

Ethical

Ethical pertains to morals, principles, and practices governing the conduct of a person or the members of a profession.

Motivational Interviewing

A counselling approach that helps individuals resolve ambivalent feelings and insecurities to find the internal motivation they need to change their behavior.