Which One of the Following Statements About the Payback Method

question 103

Multiple Choice

Which one of the following statements about the payback method of capital budgeting is correct?

• A)The payback method does not consider the time value of money.
• B)The payback method considers cash flows after the payback has been reached.
• C)The payback method uses discounted cash flow techniques.
• D)The payback method will lead to the same decision as other methods of capital budgeting.

---

Definitions:

Tasks

Specific activities or assignments that need to be completed by individuals or teams.

Task Activity

Activities that contribute directly towards achieving a specific task or goal in an organizational setting.

Performance Purpose

The underlying intention or objective behind an individual's or organization's efforts to achieve specific outcomes or goals.

Team Member

An individual who contributes to group efforts within a team, participating in collaborative tasks and objectives.