Because of Its Complex Calculation, Few Managers Rely on the Payback

question 37

True/False

Because of its complex calculation, few managers rely on the payback period as a capital budgeting analysis tool.

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Definitions:

Method of Loci

A mnemonic device or technique in which a person visualizes the items they're trying to learn in different physical locations.

Link Method

A mnemonic strategy that involves forming a mental image connecting the items in a list to remember them more easily.

Mental Image

A representation of sensory experience held in the mind, which can be recalled or manipulated.

Acronym Method

A mnemonic device that involves using the initials of information to be remembered to form a word or phrase.