Question 8 (1 point)

Which of the following statements best describes payback?

Question 8 options:

	The discounted payback method recognizes all cash flows over a projects life, and it also adjusts these cash flows to account for the time value of money.
	The regular payback method was widely used years ago, but virtually no companies even calculate the payback today.
	The regular payback is useful as an indicator of a projects liquidity because it gives managers an idea of how long it will take to recover the funds invested in a project.
	The regular payback method recognizes all cash flows over a projects life.

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