Which of These Are Disadvantages of the Payback Method

question 50

Multiple Choice

Which of these are disadvantages of the payback method?
I.May ignore some cash flows
II.Required time period is set arbitrarily
III.Easy to compute
IV.Ignores the time value of money

• A)IV only
• B)I and III only
• C)II and IV only
• D)II,III,and IV only
• E)I,II,and IV only

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