A characteristic of the payback method is that it
A) Cannot incorporate into the calculation the time value of money.
B) Neglects total project profitability (i.e., profitability over the entire life of the project).
C) Uses accrual accounting numbers in the numerator of the calculation.
D) Uses the estimated life of the asset in the denominator of the calculation.
E) Uses the hurdle (i.e., discount) rate in the calculation.

Question

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The Answer of A characteristic of the payback method is that it
A) Cannot incorporate into the calculation the time value of money.
B) Neglects total project profitability (i.e., profitability over the entire life of the project).
C) Uses accrual accounting numbers in the numerator of the calculation.
D) Uses the estimated life of the asset in the denominator of the calculation.
E) Uses the hurdle (i.e., discount) rate in the calculation.

A Characteristic of the Payback Method Is That It