In which one of the following situations would the payback method be the preferred method of analysis?
A)A long-term capital-intensive project
B)Two mutually exclusive projects
C)A proposed expansion of a firm's current operations
D)Different-sized projects
E)Investment funds available only for a limited period of time

Question

Quizplus · Accepted Answer

The payback method is preferred when investment funds are available only for a limited period of time because it focuses on how quickly the initial investment can be recovered, which is crucial when funds are constrained.

In Which One of the Following Situations Would the Payback