Question

The payback period analysis is not the best decision making method for high tech industry as the method chooses the best choice based on how fast an investment can be recovered.

a. True
b. False

Answer 1

b. False

Step-by-step explanation:

The statement is false because the payback period analysis is one of the best decision making method as the payback method tells us how quickly a firm is able to cover or get back its initial investment. Lower the payback period, higher will be the liquidity with the firm.

Therefore, the answer is FALSE.