Which ONE of the following statements about the payback method is true? A) The p

ID: 2660523 • Letter: W

Question

Which ONE of the following statements about the payback method is true?

A) The payback method is consistent with the goal of shareholder wealth maximization

B) The payback method represents the number of years it takes a project to recover its initial investment plus a required rate of return.

C) There is no economic rational that links the payback method to shareholder wealth maximization.

D) None of these statements are true.

A) The payback method is consistent with the goal of shareholder wealth maximization

B) The payback method represents the number of years it takes a project to recover its initial investment plus a required rate of return.

C) There is no economic rational that links the payback method to shareholder wealth maximization.

D) None of these statements are true.

C) There is no economic rational that links the payback method to shareholder wealth maximization.

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