Q.

Which of the following statements is incorrect?

A. the simplicity of the payback period method is one of its most appealing qualities even though it fails to measure project profitability.
B. if two investors are considering the same project, the payback period will be longer for the investor with the higher marr.
C. considering the cost of funds in a payback calculation is equivalent to finding the time period when the project balance becomes zero.
D. if you were to consider the cost of funds in a payback period calculation, you would have to wait longer to breakeven as you increase the interest rate.
Answer» B. if two investors are considering the same project, the payback period will be longer for the investor with the higher marr.
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