Only One of the Following Features Is Characteristic of a Payback

question 25

Multiple Choice

Only one of the following features is characteristic of a payback period.Identify this feature.

• A)uses discounting
• B)ignores cash flows beyond the payback period
• C)equivalent to net present value
• D)considers time value of money

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Definitions:

Total Output

The complete amount of goods or services produced by an economy, sector, or organization over a certain period.

Least Skilled Worker

An employee who possesses the minimal skills required for a job, often receiving the lowest wages.

MP

Represents marginal productivity, which is the additional output derived from the use of one more unit of a variable input, holding all other inputs constant.

Barbershop

A place of business where people, typically men, go to get haircuts and other grooming services such as shaves.