There Are Several Disadvantages to the Payback Method, Among Them

question 18

Multiple Choice

There are several disadvantages to the payback method, among them:

• A) Payback ignores the interest that is earned during the period of time the project is in place.
• B) Payback emphasizes receiving money back as fast as possible for reinvestment.
• C) Payback is basic to use and understand.
• D) Payback can be used in conjunction with time-adjusted methods of evaluation.

---

Definitions:

Sales Contract

A contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price.

Shipment

The process of transporting goods from one location to another, often involving multiple carriers or modes of transport.

Special Business Standards

Specific codes of conduct, practices, and operational benchmarks set for businesses in certain sectors to enhance quality, safety, and ethics.

Commercial Expertise

Specialized knowledge or skills in the field of commerce, including areas like marketing, finance, and international trade.