The major limitation of using the payback period as a tool in capital budgeting is that it ignores the time value of money.
The payback period technique does not account for the time fee of money idea and it's far directly thinking about the fee of cash inflows so it'll now not be presenting with the accurate estimation of while the capital is lower back to the shareholders and it's far the least correct approach due to the fact the opposite method like discounted payback period or internal rate of going back are imparting with a higher estimation due to the fact they cut price for the time value of money.
As payback does now not remember the time cost of money, it considers all cash inflows to be equal in fee irrespective of the time when it occurs. It could offer erroneous results, as the cash obtained a yr later than the given one (present) is much less in price, if we practice the idea of time cost of money.
The term payback period refers to the amount of time it takes to get better the cost of funding. In reality put, it's miles the duration of time and funding reaches a breakeven point. Human beings and businesses mainly make investments in their cash to get paid lower back, that's why the payback duration is so critical.
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Answer:
c. 25 %
Explanation:
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Free market economy is a system that is solely based on the supply and demand and that there is very little or no governmental control at all. This type of government is able to grow because of its flexibility depending on the needs of the consumers and not on the imposed law by authorities.
Answer: Loss leader pricing
Explanation:
Loss leader pricing is a pricing strategy that involves fixing the price of a product well below its cost or market price to attract a new set of customers. In most cases, the "loss" in such products is shifted to another product to cushion its effect. The grocery store is selling milk at $1.50 lower than its market cost by employing loss leader pricing strategy to its business model.
Answer:
A. Green marketing
Explanation:
Green marketing involves advertising products, goods and services that are Eco-friendly or beneficial to the environment.
Green marketing is very important because it helps customers to get to know the green advantages product has and how committed an organization is towards environmental sustainability. It is also a medium through which the society can be enlightened about environmental sustainability.
Disadvantages of Green marketing.
•Getting green certification is expensive and tedious.
•Increase in cost.
