Which of the Following Is NOT a Limitation of the Payback

question 122

Multiple Choice

Which of the following is NOT a limitation of the payback rule?

• A) It does not consider the time value of money.
• B) Lacks a decision criterion that is economically based.
• C) It is difficult to calculate.
• D) It does not consider cash flows occurring after the payback period.

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Definitions:

Hypothesis

A proposed explanation for a phenomenon, made as a starting point for further investigation, subject to testing and validation.

Tentative Statement

An initial proposition made without complete confidence or evidence, subject to further verification.

Scientific Law

A statement based on repeated experimental observations that describes some aspects of the universe, always under the same conditions.

Mathematical Formula

A concise way of expressing information symbolically, as in a mathematical or chemical equation.