Which of the following are disadvantages of the payback


Which of the following are disadvantages of the payback period decision rule?

I. fails to account for the riskiness of the cash flows

II. ignores cash flows beyond the cutoff date

III. ignores the time value of money

IV. gives no indication of how much value is being created by the project

V. simple to communicate to many different people

A. I and IV only

B. II and IV only

C. II, III, and V only

D. I, II, III, and IV only

E. I, II, III, IV, and V

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Financial Management: Which of the following are disadvantages of the payback
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