All of the following are criticisms of the payback-period


All of the following are criticisms of the payback-period rule except:

a. Time value of money is not accounted for.

b. The cut-offs that are chosen by the firms that use this rule are subjective.

c. It uses accounting profits in its calculations, as opposed to CFs.

d. CFs occurring after the payback are ignored.

e. None of the above; all are criticisms of the payback-period rule.

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Financial Management: All of the following are criticisms of the payback-period
Reference No:- TGS02307845

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