Which of the Following Is a Reason for Firms Not

question 93

Multiple Choice

Which of the following is a reason for firms not using the payback method as a guideline in capital investment decisions?

• A) It gives an explicit consideration to the timing of cash flows.
• B) It cannot be specified in light of the wealth maximization goal.
• C) It is a measure of risk exposure and projects the possibility of a calamity.
• D) It is easy to calculate and has intuitive appeal.

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Definitions:

Sexually Explicit Films

Movies that display explicit sexual content intended for adult audiences, often with the purpose of arousal.

Rape

A form of sexual assault involving sexual intercourse or other forms of sexual penetration carried out against a person without that person's consent.

Devalue Partners

The tendency to undervalue the contributions or qualities of one's romantic or business partner, often to maintain a certain self-image or out of defensive mechanisms.

Alcohol

A psychoactive substance that can impair cognitive and physical functions, and is commonly consumed in beverages like beer, wine, and spirits.