The Statement That Is a Disadvantage of the Payback Method

question 44

Multiple Choice

The statement that is a disadvantage of the payback method of investment evaluation is:

• A)it disregards the time value of money.
• B)it disregards the post payback period cash flows.
• C)it is based on cash flows.
• D)Both A and B

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Definitions:

Public Education

A system of education that is mandated for all children and funded by government taxes, making it accessible regardless of a family's income.

Godfrey Hodgson

A British author and historian known for his works on American politics, history, and foreign policy.

Suburbanization

The process of population movement from within cities to the outskirts, resulting in the growth and development of suburban areas.

Suburban-Industrial Complex

A term describing the interconnected development of suburban living and industrial growth, often indicating a mixed-use area with both residential and industrial facilities.