Why Is It Believed That Japanese Companies Prefer the Payback

question 43

Multiple Choice

Why is it believed that Japanese companies prefer the payback period over the discounted cash flow methods for evaluating capital investment alternatives?

• A) It is consistent with their corporate strategy of investing in new technology.
• B) Japanese companies compete using very short product life cycles.
• C) Cash flows over a long period of time are difficult to predict with much accuracy.
• D) All of the above

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Definitions:

Thiamine

Thiamine, also known as vitamin B1, is a water-soluble vitamin essential for the metabolism of carbohydrates and the functioning of the nervous system.

Vitamin K

A fat-soluble vitamin essential for blood clotting and healthy bone metabolism.

Calcium

A chemical element with the symbol Ca, which is essential for living organisms, primarily in cell physiology and bone formation.

Osteoporosis

A bone disease characterized by decreased bone density and mass, making bones fragile and more susceptible to fractures.