Final answer:
The payback method measures the time it takes to recoup the initial investment. The correct answer is option A.
Step-by-step explanation:
The correct answer is A) Measures the time it takes to recoup the initial investment.
The payback method, also known as the simple payback method, measures the time it takes for a project to generate enough cash flows to recoup the initial investment. It does not consider the time value of money or take into account the complexities of other capital budgeting methods.