All of the Following Are Weaknesses of the Payback Period

question 39

Multiple Choice

All of the following are weaknesses of the payback period EXCEPT

• A) a disregard for cash flows after the payback period.
• B) only an implicit consideration of the timing of cash flows.
• C) the difficulty of specifying the appropriate payback period.
• D) it uses cash flows, not accounting profits.

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Definitions:

Direct

A straightforward or explicit way of communication or action without any intermediary steps.

Audience's Level

The general knowledge, experience, or expertise that an audience possesses, influencing how information should be communicated to them.

Biases

Prejudices or predispositions toward one thing, person, or group compared to another, often in an unfair way.

Supporting Information

Additional data or documentation that provides context, background, or further detail to the main points or arguments presented.