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:

Cue

A signal or prompt that triggers a response or indicates the nature of something.

Stimulus

An event or object that evokes a specific functional reaction in an organ or tissue, often used in psychological contexts to denote an external cue or trigger.

Behavioral Learning

A process of acquiring new behaviors or modifying existing ones through associations between stimuli and responses.

Comparative Advertising

A marketing strategy where a brand compares its product directly with competitors’ products to highlight its advantages.