Why Is Payback Often Used as the Sole Method of Analyzing

question 65

Multiple Choice

Why is payback often used as the sole method of analyzing a proposed small project?

• A)Payback considers the time value of money.
• B)All relevant cash flows are included in the payback analysis.
• C)It is the only method where the benefits of the analysis outweigh the costs of that analysis.
• D)Payback is the most desirable of the various financial methods of analysis.
• E)Payback is focused on the long-term impact of a project.

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