Payback is considered an unsophisticated capital budgeting technique, and as such:

Select one:

A. does not explicitly consider the time value of money.B. gives no consideration to risk.C. gives no consideration to the timing of cash flows.D. does consider the timing of cash flows and therefore gives explicit consideration to the time value of money.

The ________ is the discount rate that equates the present value of the cash inflows with the initial investment. Select one: A. cost of capital B. internal rate of return C. average rate of return D. payback period