Payback Is Considered an Unsophisticated Capital Budgeting Technique, and as Such

Multiple Choice

Payback is considered an unsophisticated capital budgeting technique, and as such

A) gives no consideration to risk exposure.
B) gives no consideration to the timing of cash flows and therefore the time value of money.
C) gives some implicit consideration to the timing of cash flows and therefore the time value of money.
D) does consider the timing of cash flows and therefore gives explicit consideration to the time value of money.