A Significant Disadvantage of the Payback Period Is That It

question 116

Multiple Choice

A significant disadvantage of the payback period is that it

• A) is complicated to explain.
• B) increases firm risk.
• C) does not properly consider the time value of money.
• D) provides a measure of liquidity.

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Definitions:

Argument

A series of statements or reasons made in support of or against an idea, action, or theory.

Post Office

A public service or establishment responsible for the collection, sorting, transporting, and delivery of mail to recipients.

Explanandum

This is the phenomenon or event that needs to be explained in scientific or philosophical inquiry.

Explanation

The act of making something clear or understandable by describing the relevant facts or ideas.