The Payback Method Ignores Cash Flows That an Asset Generates

question 116

True/False

The payback method ignores cash flows that an asset generates, whereas the accounting rate of return includes them.

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Definitions:

Condottieri

Condottieri were leaders of mercenary soldiers in Italy during the Middle Ages and Renaissance, hired by city-states and the papacy for military purposes.

Holy Roman Empire

A multi-ethnic complex of territories in central Europe that developed during the Early Middle Ages and lasted until its dissolution in 1806, often led by an emperor elected by the princes.

Patronage

The support, encouragement, privilege, or financial aid that an organization or individual bestows to another.

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, radically transforming societies.