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What is a benefit of using the payback method

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Reference no: EM132547258

Question 1) All of the following measures focus on long-term solvency except:

Select one:

a. times interest earned.

b. debt to equity.

c. None of the answer choices is correct.

d. debt to assets.

e. inventory turnover ratio.

Question 2) Which of the following is a benefit of using the payback method?

Select one:

a. It considers the cash inflows after the initial cash outflows are recovered.

b. It measures profitability.

c. It considers the time value of money.

d. None of the answer choices is correct.

e. It determines how long it will take to recover the initial investment.

Reference no: EM132547258

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