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:

Racketeer Influenced

Pertains to activities or operations that are influenced or controlled by individuals involved in organized crime, often leading to illegal business practices.

White-Collar Crime

Non-violent crime committed by individuals or corporations in the course of their professional lives, often involving fraud or theft.

RICO Act

The Racketeer Influenced and Corrupt Organizations Act, a federal law designed to combat organized crime in the United States by enabling extended penalties for acts performed as part of a criminal organization.

Probable Cause

A reasonable basis for believing that a crime may have been committed, necessary for certain legal actions like search warrants.