Which One of the Following Is an Advantage of the Payback

question 130

Multiple Choice

Which one of the following is an advantage of the payback method of evaluating capital investment proposals?

• A) It provides a (rough) measure of project risk.
• B) It is linearly related to the net present value (NPV) of a proposed project.
• C) It considers all possible future cash flows of the project.
• D) It applies conventional discounting procedures to anticipated future cash flows.
• E) It allows managers to choose between competing projects with different useful lives.

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Definitions:

Nutritional Status

A measure of the body's health and vitality, determined by the intake, absorption, and use of nutrients.

Caloric Intake

The amount of calories consumed from foods and beverages by an individual within a certain time period.

Vitamins

Organic compounds that are essential in small amounts for the body to maintain health and support its biochemical functions.

Obese

A medical condition characterized by excess body fat that presents significant risks to health and wellbeing.