Which of the Following Is a Disadvantage of Payback Period

question 92

Multiple Choice

Which of the following is a disadvantage of payback period approach?

• A) It does not examine the size of the initial outlay.
• B) It does not use net profits as a measure of return.
• C) It does not explicitly consider the time value of money.
• D) It does not take into account an unconventional cash flow pattern.

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Definitions:

Non-verbal Communication

The process of conveying a message without the use of words, through gestures, facial expressions, and body language.

Filtering

The tendency for a message to be watered down or stopped during transmission.

Organizations

Groups of people structured in a specific way to achieve a series of shared goals or objectives.

Upward Communication

The process of information flow from the lower levels of a hierarchy to the higher levels, often including feedback, reports, or suggestions.