Which one of the following is the primary advantage of payback analysis?
A)Incorporation of the time value of money concept
B)Ease of use
C)Research and development bias
D)Arbitrary cutoff point
E)Long-term bias

Question

Quizplus · Accepted Answer

Ease of use. Payback analysis is a simple and easy-to-use method for evaluating investment proposals. It is based on the concept of payback period, which is the amount of time it takes for an investment to generate enough cash flow to cover its initial cost. Payback analysis is often used as a screening tool to identify potential investment opportunities.

Which One of the Following Is the Primary Advantage of Payback