Which of the following statements concerning the payback period, is not true? a. The payback period measures the time that a project will take to generate enough cash flows to cover the initial investment.incorrect b. the payback period involves a simple method c. the payback period takes into account the time value of money d. the payback period ignores cash flows

Cornerstones of Cost Management (Cornerstones Series)
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Chapter19: Capital Investment
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Problem 20E
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Which of the following statements concerning the payback period, is not true?

a.

The payback period measures the time that a project will take to generate enough cash flows to cover the initial investment.incorrect

b.

the payback period involves a simple method

c.

the payback period takes into account the time value of money

d.

the payback period ignores cash flows

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