14.Which of the following statements about payback is true?
A.A change in the cost of capital will affect the payback
B.Payback is technically superior to NPV
C.Payback is useful as an initial screening device
D.Payback takes into account the time value of money
答案：Payback is useful as an initial screening device
Payback is useful as an initial screening device. The NPV method is technically superior to the payback method, not vice versa. The other options are both false because the payback method does not discount and so does not use a cost of capital. This time value of money is therefore not taken into account.
