Question

The Cash Payback Method of Capital Investment Analysis has both positive and negative aspects. Which is...

  1. The Cash Payback Method of Capital Investment Analysis has both positive and negative aspects. Which is not one of them?

  1. It is simple to use
  2. It analyzes cashflows
  3. It ignores cashflows after the payback period
  4. It limits the time used to determine cash paybacks
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Answer #1

The answer is (d) i.e, It limits the time used to determine cash paybacks because it does not limits the time rather it ignores the timing of cash inflows within the payback period.

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