All of the following are criticisms of the payback period criterion EXCEPT
A) time value of money is not accounted for.
B) cash flows occurring after the payback are ignored.
C) it deals with accounting profits as opposed to cash flows.
D) None of the above; they are all criticisms of the payback period criteria.

Question

Quizplus · Accepted Answer

The payback period criterion is criticized for ignoring the time value of money and cash flows after the payback period, but it does not deal with accounting profits; it focuses on cash flows.

All of the Following Are Criticisms of the Payback Period