b BC ratio Future Worth Sensitivity analysis c d 3 According

b. B/C ratio Future Worth Sensitivity analysis c. d. 3. According to the book, a poor analysis technique for ranking alternatives is a. Benefit-cost analysis b. Incremental rate of return c. Payback period d. Present Worth Analysis 2

Solution

Answer -(c) - Payback period

Explanation-

The payback period is the period of time needed for the profit or other benefits of an investment to equal its cost.
This method is simple to use and understand, but is a poor analysis technique for ranking alternatives. It
provides a measure of the speed of return of the investment, but is not an accurate measure of its profitability.