What is the major disadvantage in using the Payback Period method for capital budgeting decisions?

Select one:

a. It is less accurate than other methods in estimating when the capital is returned to the shareholders.

b. It is based on linear approximation between cash flow points which is an assumption that may not be true.

c. It is not an guaranteed indicator of the optimal wealth level of the company as it places its focus on short term comfort factors such as the return of capital outlay as a proxy.

d. It oversimplifies the calculations and thus the results that come out are unreliable.