There are several disadvantages to the payback method, among them: a. Payback ignores the time value of money. b. Payback emphasizes receiving money back as fast as possible for reinvestment. c. Payback is basic to use and to understand. d. Payback can be used in conjunction with time-adjusted methods of evaluation.
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Option B is partially correct, as the payback method does emphasize receiving money back quickly, but this is not necessarily a disadvantage. Option A is the correct answer, as it states that the payback method ignores the time value of money. This means that Show more…
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