Using the payback method can be appropriate when the time value of money is very low.

Name: Using the payback method can be appropriate when the time value of money is very low.
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

The payback method does not consider the time value of money, so it is not appropriate when the time value of money is significant. It only looks at how long it will take to recoup the initial investment without considering the present value of future cash flows.

Using the Payback Method Can Be Appropriate When the Time