The Payback Period Rule Is a Convenient and Useful Tool

question 75

Multiple Choice

The payback period rule is a convenient and useful tool because:

• A) it provides a quick estimate of how rapidly the initial investment will be recouped.
• B) results of a short payback rule decision will be quickly seen.
• C) it does not have to take into account time value of money.
• D) All of these.
• E) None of these.

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Definitions:

Company's Goals

The objectives or targets that an organization aims to achieve, which guide its operations, strategic planning, and decision-making processes.

Human Resource Management

The strategic approach to the effective management of people in an organization to help the business gain a competitive advantage.

Employer

An individual or organization that hires and pays people to perform specific jobs or services.

Employees

Individuals who are hired by a company or another person to perform work in exchange for compensation under a contract of employment, whether oral or written.