Which One of the Following Statements About the Payback Method

question 103

Multiple Choice

Which one of the following statements about the payback method of capital budgeting is correct?

• A) The payback method does NOT consider the time value of money.
• B) The payback method considers cash flows after the payback has been reached.
• C) The payback method uses discounted cash flow techniques.
• D) The payback method will lead to the same decision as other methods of capital budgeting.

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Definitions:

Workforce Planning

The methodology of examining, predicting, and organizing the needs and provisions of the workforce, identifying discrepancies, and identifying specific strategies for talent management.

Headcounts

The total number of individuals employed by an organization at any given time, including full-time, part-time, and temporary staff.

Historical Requirements

The specific needs or conditions that were present in the past and may influence current decisions or policies.

HR Forecasting

The process of predicting an organization's future human resources needs based on its business objectives, current workforce, and external labor market trends.