The Payback Method of Evaluating Capital Investments Measures the Recovery

question 111

True/False

The payback method of evaluating capital investments measures the recovery of the investment,but it does not measure profitability.

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Definitions:

Monthly Payment

A specified amount of money paid once per month, often related to loans or service subscriptions.

Equal Opportunity Act

A law designed to ensure that all individuals have a fair chance to participate in certain activities or obtain goods and services, without discrimination based on factors like race, gender, or ethnicity.

Fair Credit Reporting Act

The law that gives protection to a consumer in the case of errors on a monthly credit card statement; consumers are not responsible for a disputed amount or the finance charges that amount accrues, until the error is resolved.

APR

Annual Percentage Rate; a measure that reflects the cost of borrowing money or the return on an investment, including interest and other associated fees, shown as a yearly rate.