2D3A DESPITE ITS SHORTCOMINGS, THE TRADITIONAL PAYBACK PERIOD CONTINU...
343.
CSO: 2D3a
LOS: 2D3a
Despite its shortcomings, the traditional payback period continues to be a popular method
to evaluate investments because, in part, it
a.
provides some insight into the risk associated with a project.
b.
ignores the time value of money.
c.
focuses on income rather than cash flow.
d.
furnishes information about an investment’s lifetime performance.