Four of the following statements are truly disadvantages of the regular payback

Question

Four of the following statements are truly disadvantages of the regular payback method, but one is not a disadvantage of this method. Which one is NOT a disadvantage of the payback method?
A) Lacks an objective, market- determined benchmark for making decisions.
B) Ignores cash flows beyond the payback period
C) Does not directly account for the time value of money
D) Does not provide any indication regarding a projects liquidity or risk
E) Does not take account of differences in size among projects.

Explanation / Answer

According to me getting the wrong answer using E) that isn't right. A is not either. The Correct Answer is D) Does not provide any indication regarding a projects liquidity or risk

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