Which of the Following Is True Regarding the Payback Method

Multiple Choice

Which of the following is true regarding the payback method?

A) One advantage of the payback method for evaluating potential investments is that it provides some information about a project's liquidity and risk.
B) One advantage of the payback method for evaluating potential investments is that it provides the total profit to be earned from a project.
C) One advantage of the payback method for evaluating potential investments is that it provides some information about a project's risk and cash flow from equity.
D) One advantage of the payback method for evaluating potential investments is that it provides some information about a project's liquidity and its IRR profile.