All of the Following Are Strengths of Payback Except ____________________

question 92

Multiple Choice

All of the following are strengths of payback except ____________________.

• A) Its benchmark is not determined by a relevant external constraint
• B) It incorporates the time value of money
• C) It uses a conservative reinvestment rate
• D) None of these

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Definitions:

Note Payable

A written promise to pay a specific amount of money, usually with interest, by a certain date.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within a business’s normal operating cycle if longer than a year.

Supplies

Items used in the operation of a business that are consumed or not resalable, such as office supplies or manufacturing inputs.