Question: Which statement regarding payback is true? a. The regular payback method recognizes all cash flows over a projects life. b. The discounted payback method recognizes

  1. Which statement regarding payback is true?

    a.

    The regular payback method recognizes all cash flows over a projects life.
    b.

    The discounted payback method recognizes all cash flows over a projects life, and it also adjusts these cash flows to account for the time value of money.
    c.

    The regular payback is useful as an indicator of a projects liquidity because it gives managers an idea of how long it will take to recover the funds invested in a project.
    d.

    The regular payback method was widely used years ago, but virtually no companies even calculate the payback today.

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