All of the following are considered to be disadvantages of using the payback method except the fact that it:
A) ignores the time value of money.
B) has no clearly defined decision rule.
C) does not consider cash flows that occur beyond the payback period.
D) does not adjust for risk.
E) does not provide a good measure of the project's liquidity.

Question

Quizplus · Accepted Answer

Not providing a good measure of the project's liquidity is not a disadvantage of the payback method.

All of the Following Are Considered to Be Disadvantages of Using