The Disadvantage of a Payback Period Is That It

question 48

Multiple Choice

The disadvantage of a payback period is that it:

• A) ignores the project's total profitability.
• B) considers the time value of money.
• C) considers total profitability, requiring the forecasting of all future cash flows.
• D) uses an internal rate of return to calculate profitability.
• E) uses operating income rather than cash flows.

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Definitions:

Pejorative Term

A term used to express contempt or disapproval.

Satyriasis

A condition in men characterized by an excessive or pathological compulsion for sexual intercourse or activity.

Satyriasis

A condition of compulsive sexual desire in men.