Q1: The payback period (PP)

a. complicates calculations with time value of money considerations.

b. favours projects that pay for themselves quickly.

c. is concerned specifically with enhancing the wealth of the business owners.

d. considers cash flows beyond the payback period.

Q2: Which of the following is false?

a. Payback period provides an indicator of the riskiness of a project.

b. Payback period indicates the length of time it takes for an initial investment to be repaid out of the net cash inflows from a project.

c. Payback period is sometimes criticised for its complexity.

d. Less is better with payback period.