The Primary Disadvantage of the Payback Period Is That

question 85

Multiple Choice

The primary disadvantage of the payback period is that:

• A) it incorporates all cash flows that occur after the payback period.
• B) it is highly complex.
• C) it does not allow the comparisons of alternatives.
• D) it disregards the time value of money.

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Definitions:

Sinus Venosus

A structure in the heart of some vertebrates that collects oxygen-poor blood from the body to be oxygenated in the lungs or gills.

Conus Arteriosus

The tapering chamber connecting the ventricle of the heart to the aorta in some vertebrates, smoothing the blood flow as it enters systemic circulation.

Atrium

A chamber of the heart that receives blood returning to the heart from the body or the lungs.

Ventricle

(1) One of four interconnected chambers in the brain through which cerebrospinal fluid flows. (2) One of the chambers of the heart that receives blood from an atrium and pumps blood into arteries.