The main advantage of the payback rule is that it
A)adjusts for uncertainty of early cash flows.
B)is simple to use.
C)does not discount cash flows.
D)better accounts for salvage costs at the end of a project.

Question

Quizplus · Accepted Answer

The main advantage of the payback rule is that it is simple to use. However, it does not take into account the time value of money or future cash flows beyond the payback period, making it a less precise method of analyzing investments.

The Main Advantage of the Payback Rule Is That It