The payback method:Select one:a. Is generally used only for large projects. b. Always applies a ten year cut-off point for cash flows. c. Entails difficult computations. d. Adjusts for the risk level inherent in a project. e. Is prejudiced towards short-term projects.

The correct answer is the option D: Adjusts for the risk level inherent in a project.

Explanation:

To begin with, the "payback method" refers to a quite simple concept whose main focus is on calculating the amount of time that it will take to an investor to recover the original payment made at the beginning of the investment project. Therefore that this concept concentrates in the risk level of the investment due to the fact that the calculation will show how much it will take to the project to recover the payment done in the first so that means that it will positionate the projects in high risk investments and in low risk investments regarding the time of it.

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