Some Firms Use the Payback Period as a Decision Criterion

Multiple Choice

Some firms use the payback period as a decision criterion or as a supplement to sophisticated decision techniques, because

A) it explicitly considers the time value of money.
B) it can be viewed as a measure of risk exposure because of its focus on liquidity.
C) the determination of the required payback period for a project is an objectively determined criteria.
D) none of the above.