The advantage(s) of the payback method of evaluating investment proposals is/are:
i. it recognises the time value of money.
ii. it is easy to calculate and understand.
iii. it recognises cash flows beyond the payback period.
Which of the above statements is/are true?

A) i and ii
B) ii and iii
C) ii
D) All of the given answers

Payback Method

A capital budgeting technique that calculates the time required for an investment to generate cash flows sufficient to recover its initial cost.

Time Value of Money

The principle that holding money now is more valuable than possessing the same sum at a later date because of its current potential to generate earnings.