Which of the following are not applicable in the case of Payback period calculation of investment appraisal ?

CS Executive · Financial and Strategic Management · PYQS · December 2019
Which of the following are not applicable in the case of Payback period calculation of investment appraisal ?
(A) It is simple in concept and application.
(B) It favours only those projects that generate substantial inflows in the earlier years.
(C) The cut-off period is chosen arbitrarily.
(D) It considers the time value of money.

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management

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