The Payback Method

question 60

Multiple Choice

The payback method

• A)discounts all cash flows properly.
• B)requires each firm to set a firmwide cash flow cutoff period.
• C)considers all relevant cash flows.
• D)superior to the net present value method.
• E)ignores the time value of money.

---

Definitions:

Simple Tasks

Activities or duties that are straightforward and uncomplicated, requiring minimal skill or effort to complete.

Zajonc

Zajonc is known for his work on social facilitation and the mere exposure effect, illustrating how presence of others affects individual performance and how repeated exposure increases liking.

Ringelmann Effect

The phenomenon where individual productivity decreases as the size of the group increases, often due to coordination and motivation problems.

Social Facilitation

The tendency for individuals to perform differently when in the presence of others versus when alone, typically improving performance on simple or well-rehearsed tasks.