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.

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Definitions:

Beak Size

A morphological trait in birds and some other animals, influencing their feeding habits and ecological niche, often subject to evolutionary adaptation.

Hindlimbs

The rear limbs of an animal, especially those on the vertebrates, used for locomotion or support.

High Altitude

Pertains to areas that are significantly elevated above sea level, affecting oxygen levels and often requiring physiological adaptation for survival.

Mammary Glands

Specialized organs in mammals that produce milk to nourish newborns, a key characteristic of mammalian species.