Project appraisals contains a method called Payback period?

b. Takes into consideration only cash flows within payback period and ignores after that

Option B is the right answer.

Answer ( B ) ,

one of the dis-advantage of payback period , is it did not take into consideration :

1- the Time Value Of Money ( Discounted ) .

2- any cash flow beyond the payback Period .

B is correct answer and its huge disadvantage

Will go to "B"

Payback methoed tells managment haw many months or years it will take to recover the original cash cost of the project.

Cost of the project / annual cash revenues = Payback period

Choice B is the answer for your question dear brother

It is the period  by which origional investment will be earned and the

Answer is "B"

Takes into consideration only cash flows within payback period and ignores after that

Answer B.

Joshi Mathew

Cia