A disadvantage of the payback statistic is that
A) it does not reflect the time value of money.
B) it does not give an indication of the project's riskiness.
C) it does not consider cash flows beyond the payback period.
D) All of these choices are correct.

Question

Quizplus · Accepted Answer

The payback statistic is criticized for not reflecting the time value of money, not indicating the project's riskiness, and not considering cash flows beyond the payback period, making all of these choices correct.

A Disadvantage of the Payback Statistic Is That