Which of the following is an advantage of the payback method?
A) The technique is simple for managers to compute and interpret.
B) It is a good measure of liquidity risk.
C) Both a and b
D) None of the above

Question

Quizplus · Accepted Answer

The payback method is favored for its simplicity, making it easy for managers to compute and interpret, and it is also considered a good measure of a project's liquidity risk, indicating how quickly an investment can be recouped.

Which of the Following Is an Advantage of the Payback