A Major Disadvantage of the Payback Period Method Is That

question 62

Multiple Choice

A major disadvantage of the payback period method is that it

• A) Is useless as a risk indicator.
• B) Ignores cash flows beyond the payback period.
• C) Does not directly account for the time value of money.
• D) All of the above are correct.
• E) Only answers b and c are correct.

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Definitions:

Western Influence

describes the impact of Western cultures and societies on other regions in terms of lifestyle, technology, politics, economics, and culture.

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Alone

The state of being completely separated from others, which can be experienced as a physical situation or an emotional condition.

Group of Friends

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