What Is the Major Limitation of Using the Payback Period

question 4

Multiple Choice

What is the major limitation of using the payback period as a tool in capital budgeting?

• A) It is difficult to calculate without a computer.
• B) It favors large investments.
• C) It ignores the time value of money.
• D) It does not consider cash flows.

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Health Care Costs

The expenses associated with medical services, treatments, medications, and hospital care provided to individuals.

Government

The organization, structure, and systems that govern a community, state, or nation, responsible for regulating and managing public affairs.

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Independent companies that provide individuals and entities coverage against financial losses in exchange for premium payments.

Expenditures

Refers to the total amount of money spent by households or businesses on goods and services.