Since the payback period can be viewed as a measure of risk exposure, many firms use it as a decision criterion or as a supplement to sophisticated decision techniques.

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This statement is true. The payback period is often used as a measure of risk because it indicates how quickly the initial investment in a project will be recovered. Many firms use it as a decision criterion or as a supplement to other more sophisticated decision techniques.

Since the Payback Period Can Be Viewed as a Measure