Which of the Following Is NOT a Strength of the Payback

question 46

Multiple Choice

Which of the following is NOT a strength of the payback method of capital budgeting?

• A)The payback values are relatively simple to calculate.
• B)When comparing projects the payback method decision is intuitive.
• C)The payback method uses all project cash flows in establishing the project payback period.
• D)It is a quick measure of the inherent risk of a project.

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Definitions:

Preoperational Stage

The second stage in Piaget’s scheme, characterized by inflexible and irreversible mental manipulation of symbols.

Cognitive Development

A theory and process that explains how human intelligence grows and changes over time, focusing on how children acquire, process, and utilize information.

Abstract Reasoning

The ability to analyze information, detect patterns and relationships, and solve problems on a complex, abstract level.

Accidental Injuries

Unplanned injuries resulting from unexpected events, often leading to harm or damage that was not intentionally caused.