Which of the Following Is NOT an Advantage of the Payback

question 107

Multiple Choice

Which of the following is NOT an advantage of the payback period?

• A)It is sometimes used as a crude measure of risk.
• B)It encourages managers to choose projects with quick payback to maximize short-term criteria.
• C)It cannot be used for investments with unequal cash inflows.
• D)It cannot be used if the entire cost of the investment does not occur immediately.

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Definitions:

Remote Part

A component or aspect that is distantly or indirectly related to the main subject or event.

Breach Of Contract

The failure to perform a contract in accordance with its terms.

Government Contract

An agreement between a private party and a governmental entity for the provision of goods or services.

Lost Profits

Financial losses incurred due to the interruption of normal business operations or activities, often recovered through legal claims.