Question

the payback period is frequently used to analyze independent projects because: question 19 options: it considers the time value of money. it is the most desirable of all the available analytical methods from a financial perspective. it is easy and quick to calculate. all relevant cash flows are included in the analysis.

Answer 1

The payback period is frequently used to analyze independent projects because it is easy and quick to calculate, and it includes all relevant cash flows in the analysis.

Step-by-step explanation:

The payback period is frequently used to analyze independent projects because it is easy and quick to calculate, and it includes all relevant cash flows in the analysis.

The payback period is the length of time it takes for an investment to recover its initial cost through the cash flows it generates. It helps businesses determine how long it will take to recoup their investment and make a profit.

While the payback period is a useful tool, it does not consider the time value of money, meaning it does not account for the potential impact of inflation or the opportunity cost of investing the money elsewhere.