Since the payback period can be viewed as a measure of risk exposure, many firms use it as a supplement to other decision techniques.

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Quizplus · Accepted Answer

This statement is true. The payback period represents the length of time it takes for an investment to recover its initial cost, and thus it provides an indication of how long a company's funds will be tied up in a particular project. As such, the payback period is often used as a risk assessment tool in conjunction with other decision-making methods.

Since the Payback Period Can Be Viewed as a Measure