Which of the Following Is an Advantage of the Payback

Multiple Choice

Which of the following is an advantage of the payback period?

A) It is a simple technique.
B) Accounting records are generally not based on cash flow, so the information for the calculation is readily available.
C) Since depreciation is not included in the calculation, the result is not distorted.
D) It provides a clear indicator of when the investment will be recovered.