By using the payback period method a decision-maker
A)equally treats short- and long-term projects.
B)takes into account the timing of cash flows.
C)accounts for time value of money.
D)disregards the need for a fast capital recovery.
E)favours long-term projects over the short-term projects.

Question

Quizplus · Accepted Answer

The payback period method takes into account the timing of cash flows by calculating the length of time it takes for an investment to generate enough cash flow to cover its initial cost.

By Using the Payback Period Method a Decision-Maker