Disadvantage of the payback method include: Answer choices are below: A) does not consider cash flows past payback period. B) the most common version does not account for time value of money. C) has a bias against long-term projects such as research and development and new product launches. D) all of the above.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
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Disadvantage of the payback method include:
Answer choices are below:
A) does not consider cash flows past payback period.
B) the most common version does not account for time value of money.
C) has a bias against long-term projects such as research and development and new
product launches.
D) all of the above.
Transcribed Image Text:Disadvantage of the payback method include: Answer choices are below: A) does not consider cash flows past payback period. B) the most common version does not account for time value of money. C) has a bias against long-term projects such as research and development and new product launches. D) all of the above.
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