A major disadvantage of using the payback period method to compare investment alternatives is that:

Select one:

a.

It considers the time value of money.

b.

It cannot be used when annual net cash flows are not even (equal).

c.

It cannot be used if a company records depreciation.

d.

It cannot be used to compare investments with different initial investment amounts.

e.

It ignores cash flows beyond the payback period.