From a fiNance Perspective, Discounted Payback Is Considered to Be

Multiple Choice

From a finance perspective, discounted payback is considered to be a superior method of analysis as compared to payback. Why then, is discounted payback used less frequently than payback?

A) Discounted payback applies only to long-term projects.
B) Discounted payback is more difficult to compute and explain.
C) Discounted payback is based on net income rather than cash flows.
D) Discounted payback requires knowledge of a project's internal rate of return.
E) Discounted payback is liquidity biased where payback is not.