Advantages of the Payback Period Include That It Is Easy

question 63

True/False

Advantages of the payback period include that it is easy to calculate,easy to understand,and that it is based on cash flows rather than on accounting profits.

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Definitions:

Asset

Anything of value owned by a company.

Business

All profit-seeking activities and enterprises that provide goods and services necessary to an economic system.

Assets

Resources owned by a business or individual that are expected to provide future economic benefit.

Liabilities

Financial obligations or debts that a company or individual owes to others.