Why is discounted payback not used very much by companies

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Question 1: Why is discounted payback not used very much by companies in evaluating projects?

Select one:

Option a) It is a theoretically less accurate measure of the projects worth than simple payback

Option b) It requires the use of the minimum attractive rate of return in its calculation, and therefore loses most of the appeal of the simple payback calculation

Option c) It frequently provides recommendations that conflict with the recommendations obtained by using the present worth and the internal rate of return methods

Option d) It is not endorsed as a sound financial practice by the securities and exchange commission(sec)

Reference no: EM132478484

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