AHIP Exam AHM-520 Topic 5 Question 65 Discussion

Actual exam question for AHIP's AHM-520 exam

Question #: 65
Topic #: 5

The following statements are about the capital budgeting technique known as the payback method. Select the answer choice containing the correct statement:

AThe main benefit of the payback method is that it is simple to use.

BThe payback method measures the profitability of a given capital project.

CThe payback method considers the time value of money.

DThe payback method states a proposed project's cash flow in terms of present value for the life of the entire project.

Show Suggested Answer

Suggested Answer: A

by Evangelina at Feb 05, 2023, 06:37 AM

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