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A Major Disadvantage of the Payback Period Method Is That

Question 23

Multiple Choice

A major disadvantage of the payback period method is that it


A) Is useless as a risk indicator.
B) Ignores cash flows beyond the payback period.
C) Does not directly account for the time value of money.
D) All of the answers above are correct.
E) Only answers b and c are correct.

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