All of the following are considered to be disadvantages of using the p

All of the following are considered to be disadvantages of using the payback method except the fact that it:

A) ignores the time value of money.
B) has no clearly defined decision rule.
C) does not consider cash flows that occur beyond the payback period.
D) does not adjust for risk.
E) does not provide a good measure of the project’s liquidity.

ANSWER

E