The Advantages of the Payback Method of Project Analysis Include

question 65

Multiple Choice

The advantages of the payback method of project analysis include the: I. application of a discount rate to each separate cash flow.
II) bias towards liquidity.
III) ease of use.
IV) arbitrary cutoff point.

• A) I and II only
• B) I and III only
• C) II and III only
• D) II and IV only
• E) II, III, and IV only

---

Definitions:

Iso-profit Line

A graphical representation in operations research and economics indicating all combinations of two products that generate the same level of profit.

Optimum

The most advantageous condition or degree of something, where the best possible outcome is achieved.

Feasible Region

In optimization problems, it is the set of all possible points that satisfy the problem's constraints, representing all possible solutions.