The Advantage of the Payback Period Over Other Capital Budgeting

Multiple Choice

The advantage of the payback period over other capital budgeting techniques is that

A) it is the simplest and oldest formal model to evaluate capital budgeting model.
B) it directly accounts for the time value of money.
C) it ignores cash flows beyond the payback period.
D) it always leads to decisions that maximize the value of the firm.
E) it incorporates risk into the discount rate used to solve the payback period.