The more intermediaries there are in a distribution channel, the less costly the channel becomes

Increases in inventory and accounts receivable expected to occur if a proposed advertising

campaign is undertaken are examples of sunk costs. Indicate whether the statement is true or false

All of the following are considered to be disadvantages of using the payback method except the fact that it:

A) ignores the time value of money. B) has no clearly defined decision rule. C) does not consider cash flows that occur beyond the payback period. D) does not adjust for risk. E) does not provide a good measure of the project's liquidity.