Please answer these 2 questions by circleing the right answer and please explain why it is the right answer. thanks.

1) If you are using the payback period to make your decision among investment, what is a major assumption you are making?

a)that the balancesheet is reflective of the investment choice.

b)That the foreign currency adjustment is valid.

c)That everything else involved is Equal

d)That the amount calculated reflects inflationary periods.

2) if you are using payback period to make your investment choices, which below is a major criticism of this method?

a)this method only focuses on time, not physical location of the investment.

b)This method focuses on operating income and not net cash flow.

c)There are no major criticisms of this method.

d)This method focuses only on time, not profitability.