Which One of the Following Statements About the Payback Method

Multiple Choice

Which one of the following statements about the payback method of capital budgeting is correct?

A) The payback method does not consider the time value of money.
B) The payback method considers cash flows after the payback has been reached.
C) The payback method uses discounted cash flow techniques.
D) The payback method will lead to the same decision as other methods of capital budgeting.