What Is the Major Limitation of Using the Payback Period

question 4

Multiple Choice

What is the major limitation of using the payback period as a tool in capital budgeting?

• A) It is difficult to calculate without a computer.
• B) It favors large investments.
• C) It ignores the time value of money.
• D) It does not consider cash flows.

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A visual representation of data designed to communicate information clearly and efficiently.

Frequency Distribution

The organization of raw data in table form, showing how frequently each value in a set of data occurs.

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Idea

A thought or suggestion as to a possible course of action, concept, or level of understanding.