Which of These Is a Disadvantage of the Payback Method

question 36

Multiple Choice

Which of these is a disadvantage of the payback method of investment evaluation?

• A) It disregards the time value of money.
• B) It disregards the post payback period cash flows.
• C) It is based on cash flows.
• D) Both A and B.

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Definitions:

West Bank

A territory located in the Middle East, bordered by Israel and Jordan, known for its central role in the ongoing Israeli-Palestinian conflict.

General Adaptation Syndrome (GAS)

A model describing the body's short-term and long-term reactions to stress, introduced by Hans Selye, which consists of three stages: alarm, resistance, and exhaustion.

Hans Selye

A pioneering scientist known for his research on stress and the development of the general adaptation syndrome theory.

General Adaptation Syndrome (GAS)

A theoretical model describing the body's short-term and long-term reactions to stress, characterized by stages of alarm, resistance, and exhaustion.