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Which statement regarding payback is true? a . Although the payback methods have serious faults as ranking criteria, they do provide information on liquidity and
Which statement regarding payback is true?
a Although the payback methods have serious faults as ranking criteria, they do provide information on liquidity and risk because it gives managers an idea of how long it will take to recover the funds invested in a project.
b The regular payback method recognizes all cash flows over a projects life.
c The regular payback method doesnt recognize cash flows beyond the payback year, but the discounted payback method solves this problem.
d The discounted payback method recognizes cash flows after the payback year, and it also adjusts these cash flows to account for the time value of money.
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