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:

Stomach Acid

The hydrochloric acid present in the stomach, essential for digestion and protection against pathogens.

Analgesics

Medications designed to reduce or eliminate pain, commonly known as painkillers.

Aspirin

A medication used to reduce pain, fever, or inflammation, it also has an antiplatelet effect for preventing blood clots.

Percocet

A prescription painkiller that combines oxycodone, a powerful opioid, with acetaminophen, used to treat moderate to severe pain.