Why Is It Believed That Japanese Companies Prefer the Payback

Multiple Choice

Why is it believed that Japanese companies prefer the payback period over the discounted cash flow methods for evaluating capital investment alternatives?

A) It is consistent with their corporate strategy of investing in new technology.
B) Japanese companies compete using very short product life cycles.
C) Cash flows over a long period of time are difficult to predict with much accuracy.
D) All of the above