Which of These Is Not True for the Payback Method

question 6

Multiple Choice

Which of these is not true for the payback method of investment analysis?

• A) It does not consider the time value of money.
• B) It does not consider project profitability.
• C) It is relatively simple to calculate.
• D) The longer the payback period the better.

---

Definitions:

Short-term Storage

The part of the memory system where information is temporarily held before it is either forgotten or transferred to long-term memory.

Procedural Memory

A type of long-term memory for performing certain types of tasks or procedures, such as riding a bike or typing, without conscious awareness of the previous experiences.

Bicycling

The use of a bicycle for transportation, recreation, exercise, or sport.

Episodic Memory

A form of enduring memory that is concerned with remembering distinct occurrences, contexts, and personal experiences.