Which of the Following Is NOT a Limitation of the Payback

question 40

Multiple Choice

Which of the following is NOT a limitation of the payback period rule?

• A) It does not account for the time value of money.
• B) It is difficult to calculate.
• C) It ignores cash flows after payback.
• D) It does not account for changes in the discount rate.

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Definitions:

Centration

Centration is a term from cognitive psychology describing a tendency to focus on one aspect of a situation while neglecting others, common in early childhood development.

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A cognitive ability, identified by Jean Piaget, that allows a person to understand that certain properties of objects remain the same despite changes in the object's form or appearance.

Scaffolding

Pedagogical technique that provides supportive structures and tools to aid learning, allowing students to perform tasks they cannot do independently.

Model Airplane

A scaled-down replica of an aircraft, used for display, hobby building, or flying competitions.