Which one of the following is the primary advantage of the payback method of analysis?
A) Easy to compute.
B) Inclusion of time value of money considerations.
C) Liquidity bias.
D) Arbitrary cut-off point.
E) Current market rate of return considerations.

Question

Quizplus · Accepted Answer

The primary advantage of the payback method of analysis is its simplicity and ease of computation, making it straightforward for businesses to estimate how long it will take to recoup their initial investment.

Which One of the Following Is the Primary Advantage of the Payback