The payback period can be considered justified for which of the following reasons?
A) It can account for the risk of the project.
B) It can account for the time value of the project.
C) It can account for the return on investment.
D) It can account for the objective rationale of the project.

Question

Quizplus · Accepted Answer

The payback period is often used to assess the risk of a project, as it measures the time it takes for an investment to generate an amount of income or cash equal to the cost of the investment, thereby indicating the risk associated with the project's cash flow.

The Payback Period Can Be Considered Justified for Which of the Following