There Are Several Disadvantages to the Payback Method, Among Them

question 18

Multiple Choice

There are several disadvantages to the payback method, among them:

• A) Payback ignores the interest that is earned during the period of time the project is in place.
• B) Payback emphasizes receiving money back as fast as possible for reinvestment.
• C) Payback is basic to use and understand.
• D) Payback can be used in conjunction with time-adjusted methods of evaluation.

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Definitions:

Statute of Limitations

A legal rule determining the furthest limit in time to begin legal procedures after an occurrence.

Statute of Limitations

A regulation specifying the latest allowable date to initiate legal proceedings after a specific event.

UCC

Short for Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States.

Sales Contract

A legally binding agreement between a buyer and seller outlining the terms of a transaction for the sale and purchase of goods or services.