One Disadvantage of the Payback Method Is That It Does

question 197

True/False

One disadvantage of the payback method is that it does not consider the time value of money.

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Definitions:

Correlation Coefficient

A numeric metric that determines the intensity and orientation of a linear association between two numerical variables.

Range

The difference between the highest and lowest values in a set of data.

Magnitude

The size, extent, or importance of something, often quantitative in nature.

Perfect Positive Relationship

A correlation in which one variable increases exactly as the other one increases, represented by a correlation coefficient of +1.