Which of the Following Is Not a Characteristic of the Payback

question 109

Multiple Choice

Which of the following is not a characteristic of the payback method for making capital budgeting decisions?

• A) It is easy to calculate and comprehend.
• B) It focuses primarily on liquidity, rather than profitability, of an investment project.
• C) It can be considered a rough measure of risk.
• D) It considers returns over the entire life of the project.
• E) It requires estimates of after-tax cash inflows and after-tax cash outflows.

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Definitions:

Federal Bureaucracy

The collection of agencies and departments that make up the executive branch of the federal government, responsible for implementing and administering federal laws and policies.

Oversight

Supervisory or regulatory actions taken by authorities to ensure compliance with laws, rules, and regulations, often within public institutions.

Largest Employer

Refers to the organization or entity that employs the highest number of people within a specific geographic area, sector, or industry.

U.S. Federal Government

The U.S. Federal Government is the national government of the United States, composed of three distinct branches (legislative, executive, and judicial) established to provide national leadership and implement various laws and policies.