In considering the payback method, ____.
A) it is a method of determining the financial exposure of a firm for a project
B) it is a complicated but accurate capital budgeting method
C) it is generally superior to the net present value method
D) None of these are correct

Question

Quizplus · Accepted Answer

The payback method is used to determine the financial exposure of a firm by calculating how long it will take to recover the initial investment from the cash inflows generated by the project.

In Considering the Payback Method, ____