Which of the Following Is True Regarding the Payback Method

question 59

Multiple Choice

Which of the following is true regarding the payback method?

• A)One advantage of the payback method for evaluating potential investments is that it provides some information about a project's liquidity and risk.
• B)One advantage of the payback method for evaluating potential investments is that it provides the total profit to be earned from a project.
• C)One advantage of the payback method for evaluating potential investments is that it provides some information about a project's risk and cash flow from equity.
• D)One advantage of the payback method for evaluating potential investments is that it provides some information about a project's liquidity and its IRR profile.

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Definitions:

Nonreproductive

Referring to functions, behaviors, or organs not directly involved in the process of reproduction.

Interphase

The state of a cell carrying out its normal daily functions and not dividing.

Atoms

The basic unit of a chemical element, consisting of a nucleus of protons and neutrons, and electrons orbiting the nucleus.

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all living organisms.