The Major Weakness of Payback Period in Evaluating Projects Is

question 89

True/False

The major weakness of payback period in evaluating projects is that it cannot specify the appropriate payback period in light of the wealth maximization goal.

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Definitions:

Noncommitment

An unwillingness or hesitation to make a decision or take a definitive stance on an issue.

Esteem Needs

Part of Maslow's hierarchy of needs, referring to the need for respect, self-esteem, and recognition from others.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow that comprises a five-tier model of human needs, depicted as hierarchical levels within a pyramid; from the bottom of the hierarchy upwards, the needs are: physiological, safety, love and belonging, esteem, and self-actualization.

Recognition

The acknowledgment or appreciation of someone's effort, achievements, or status.