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Exam AHM-520 topic 1 question 34 discussion

Actual exam question from AHIP's AHM-520
Question #: 34
Topic #: 1
[All AHM-520 Questions]

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

  • A. The main benefit of the payback method is that it is simple to use.
  • B. The payback method measures the profitability of a given capital project.
  • C. The payback method considers the time value of money.
  • D. The payback method states a proposed project’s cash flow in terms of present value for the life of the entire project.
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Suggested Answer: A 🗳️
by gemazyni at April 5, 2025, 2:56 p.m.

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