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7 votes
7 votes
A major disadvantage of the payback period method is that it:_____.

a. Is useless as a risk indicator.
b. Ignores cash flows beyond the payback period.
c. Does not directly account for the time value of money.
d. All of the answers above are correct.
e. Only answers b and c are correct.

User Colincameron
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3.1k points

1 Answer

13 votes
13 votes

Answer:

C.

Step-by-step explanation:

Does not directly account for the time value of money.

User Bmaeser
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