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:

Dysphagia

A medical condition characterized by difficulty in swallowing, which may result from disorders affecting any part of the swallowing process.

Pharynx

The membrane-lined cavity behind the nose and mouth, connecting them to the esophagus.

Respiration

The process of inhaling oxygen and exhaling carbon dioxide, essential for life.

Digestion

The breakdown of food into smaller components that can be absorbed and assimilated into the body.