The ________ Method Is Simple and Fast but Economically Unsound

question 27

Multiple Choice

The ________ method is simple and fast but economically unsound as it ignores all cash flow after the cutoff date and ignores the time-value of money.

• A)Payback Period
• B)MIRR
• C)Net Present Value
• D)IRR

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Definitions:

Capital Contribution

The act of injecting funds or other assets into a company or partnership by its owners or partners to support its operations or investment activities.

Limited Partners

Investors in a partnership who have limited liability to the extent of their investment in the company and do not participate in day-to-day management.

Partnership Business

A business organization in which two or more individuals manage and operate the business in accordance with the terms and objectives set out in a Partnership Agreement.

Access

The ability or right to approach, enter, or use something.