Major Weaknesses of the Payback Method Do NOT Include Which

question 124

Multiple Choice

Major weaknesses of the payback method do NOT include which of the following?

• A) It does not measure profitability.
• B) It ignores the time value of money.
• C) It ignores cash flows beyond the payback period.
• D) It cannot be used as a rough estimate of the riskiness of a project.

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Definitions:

Case Law

Law established by previous court decisions and judicial interpretations rather than by legislative statutes.

Legal Object

A legal object in contractual terms refers to the subject matter of the contract that must be lawful and not against public policy.

Public Policy

Principles and standards considered being in the collective interests of the community, often guiding lawmaking and government actions.

Illegal

Refers to actions or activities that violate statutory law, regulations, or common law.