The Regular Payback Method Is Deficient in That It Does

question 32

True/False

The regular payback method is deficient in that it does not take account of cash flows beyond the payback period.The discounted payback method corrects this fault.

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Definitions:

Positively Skewed

Describes a distribution of numerical data where the right tail is longer or fatter than the left, indicating that the majority of values are concentrated on the left side of the distribution.

Negatively Skewed

Describes a distribution where the tail is on the left side of the distribution, indicating that the majority of data points are concentrated on the right side.

Symmetric

Symmetric describes an attribute where a shape or distribution can be divided into mirrored halves, or in statistics, where the left and right sides of a distribution are approximately equal in shape.

Skewed Negatively

Skewed negatively, also known as left-skewed, refers to a distribution in statistics where the tail is longer on the left side of the distribution's peak, indicating that a majority of the data points are located to the right of the mean.