Which Measure Results in the Time Required for a Firm

What is NOT an advantage of the payback period? A) It is sometimes used as a crude measure of risk. B) It cannot be used for investments with unequal cash inflows. C) It cannot be used if the entire cost of the investment does not occur immediately. D) It encourages managers to choose projects with quick payback to maximize short-term criteria.

Which statements best describe payback method and the accounting rate of return method? Profitability Time Value of Money A) Ignored by both methods Ignored by both methods B) Ignored by both methods Used in accounting rate of return Ignored by payback method C) Considered by accounting method; Ignored by payback method Ignored by both methods D) Considered by accounting method; Ignored by payback method Considered by both methods