Which of the following statements about payback (payback period) is most correct?   a.  Payback is a measure of time breakeven.   b.  Payback is a rough measure of risk.   c.  Payback is a rough measure of liquidity.   d.  Both a. and b. are correct.   e.  Answers a., b., and c. are all correct.

Cornerstones of Cost Management (Cornerstones Series)
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ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter19: Capital Investment
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Problem 20E
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Which of the following statements about payback (payback period) is most correct?

 

a. 

Payback is a measure of time breakeven.

 

b. 

Payback is a rough measure of risk.

 

c. 

Payback is a rough measure of liquidity.

 

d. 

Both a. and b. are correct.

 

e. 

Answers a., b., and c. are all correct.

 

 

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