What is the payback method? What are its main strengths and weaknesses? What is the payback method? Payback is a method for analyzing the financial aspects of projects that O A divides an accrual accounting measure of average annual income of a project by an accrual accounting measure of investment OB measures the time it will take to recoup, in the form of expected turenet cash inflows, the not initial investment in a project OC calculates the discount rate at which an investment's present value of all expected cashindows equals the present value of its expected cash outflows. OD. calculates the expected monetary gain or loss from a project by discounting all expected futuro cash inflows and outflows back to the present point in time using the required rate of return What is a strength of the payback method? OAIndicates whether or not the project will earn the company's minimum required rate of return OB. Simple, easy to understand and considers profitability OC Simple and easy to understand and is a handy method when screening many proposals, particularly when predicted cash flows in later years are highly uncertain OD. Incorporates the tre value of money and the project's net cash flown over its entire life, and compute the project's unique rate of return What is a weakness of the payback method? O A Cannot be used for projects with unequat periodic cash flows OB, Cannot be used when management's required rate of rolu varies from one period to the rest OG Neglects the time value of money and the cash flows after the payback period OD. Ignores the time value of money and does not consider the cash flows for a project Click to select your new