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:

Waste Products

Substances that are produced as byproducts of biological, industrial, or other processes and are not of further use within that process.

Conjoined Twins

Twins that are physically attached to each other at birth, due to the incomplete splitting of the fertilized egg during early development.

Dizygotic Twins

Also known as fraternal twins, these are siblings that develop from two different eggs fertilized by two different sperm cells, but are carried in the womb simultaneously.

Fertilized Ova

Refers to an egg cell that has been fertilized by a sperm cell, beginning the process of embryonic development.