Which of the Following Is NOT a Limitation of the Payback

question 85

Multiple Choice

Which of the following is NOT a limitation of the payback period rule?

• A)It does not account for changes in the discount rate.
• B)It ignores cash flows after payback.
• C)It is difficult to calculate.
• D)It does not account for the time value of money.

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Definitions:

Primary Objectives

The main or most important goals that an individual, organization, or project aims to achieve.

International Sales Deal

A business agreement involving the exchange of goods or services across national boundaries, often requiring considerations for cultural differences, currency exchange, and import-export regulations.

Clarification and Justification

The process of making something clearer or more understandable while also providing reasons or evidence to support a position, action, or decision.

Negotiation

A process where two or more parties discuss an issue with the aim of reaching a mutually acceptable agreement.