Which of These Is Not an Advantage of the Payback

question 33

Multiple Choice

Which of these is not an advantage of the payback method of capital budgeting?

• A) It can be used to separate investments when other methods show similar returns.
• B) The sooner cash is recovered the sooner it can be reinvested.
• C) It looks at returns over the whole life of the investment.
• D) A quick payback period reduces the risk of the investment.

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Definitions:

Asia-Pacific Region

The Asia-Pacific Region is a geographical area near the western Pacific Ocean, including countries in East Asia, Southeast Asia, and Oceania, known for its diverse cultures, economies, and strategic importance.

US Relations

The diplomatic, economic, social, and military interactions between the United States and other countries or international organizations.

Indonesia

A Southeast Asian country consisting of more than seventeen thousand islands, including Sumatra, Java, and parts of Borneo and New Guinea.

Globalisation

The process by which businesses or other organizations develop international influence or start operating on an international scale.