Why Is Payback Often Used as the Sole Method of Analyzing

Multiple Choice

Why is payback often used as the sole method of analyzing a proposed small project? 

A) Payback considers the time value of money. 
B) All relevant cash flows are included in the payback analysis. 
C) The benefits of payback analysis usually outweigh the costs of the analysis. 
D) Payback is the most desirable of the various financial methods of analysis. 
E) Payback is focused on the long-term impact of a project.