The payback method of analysis is the most beneficial in which one of the following situations?
A) a firm is considering a project that can easily be extended if it is profitable
B) a firm can either build a bowling alley or a miniature golf course on a piece of land,but not both
C) a ski resort is considering adding a golf course to increase revenues
D) a firm has free cash which can be invested but must be returned in time to meet a bond obligation two years from now
E) a firm is trying to decide between two projects with vastly different costs
Correct Answer:
Verified
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