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:

Culture-Group Biases

The tendency to judge or interpret situations, behaviors, and individuals based on the norms and values of one's own cultural group.

Minority Cultures

Groups with distinct cultural, ethnic, or racial identities that are smaller or less dominant within a larger society.

Multicultural Organization

An organization that values diversity, incorporates a broad range of perspectives and backgrounds, and actively promotes inclusiveness and understanding across different cultures.

Minority-Owned Organization

A business enterprise that is at least 51% owned, operated, and controlled by individuals from a recognized minority group.