Payback period method can be successfully employed in which of the following circumstances ?

CS Executive · Financial and Strategic Management · PYQS · June 2022
Payback period method can be successfully employed in which of the following circumstances ?
(A) Where the firm does not suffer from liquidity problem and is interested in analysing profitability
(B) Where project is certain in terms of risk, and return is a serious concern
(C) Where good returns have been estimated but uncertainty is high
(D) None of the above

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Financial Management

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