An Advantage of the Payback Method of Investment Analysis Is

question 33

Multiple Choice

An advantage of the payback method of investment analysis is:

• A)it provides a crude measure of the riskiness of a project
• B)it ignores the time value of money
• C)it ignores all cash inflows after payback has occurred
• D)none of the options is an advantage of the payback method of investment analysis

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Definitions:

Psychoanalytic Theory

A theoretical approach in psychology which posits that human behavior is influenced by unconscious motivations and conflicts, originally developed by Sigmund Freud.

Operant Conditioning

A method for learning in which the severity of an action is regulated by rewards or punitive measures.

Social Cognitive Theory

A theoretical framework that posits that learning occurs in a social context with a dynamic and reciprocal interaction of the person, environment, and behavior.

Humanistic

A psychological approach emphasizing the study of the whole person and the uniqueness of individual experience and potential.