In considering the payback method,
A)It is a method of determining the financial exposure of a firm for a project.
B)It is a complicated but accurate capital budgeting method.
C)Both a and b are correct.
D)Neither a nor b is correct.

Question

Quizplus · Accepted Answer

The payback method is used to determine how long it will take for a project to recover its initial investment, thus assessing the financial exposure. It is not considered complicated or highly accurate compared to other methods like NPV or IRR.

In Considering the Payback Method