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    Contemporary Financial Management Study Set 2
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    Exam 12: Capital Budgeting: Decision Criteria and Real Option Considerations
  5. Question
    The Payback Method Is at Best a Crude Measure of the Risk
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The Payback Method Is at Best a Crude Measure of the Risk

Question 89

Question 89

Multiple Choice

The payback method is at best a crude measure of the risk of a project because it fails to consider the ____ of a project's returns.


A) liquidity
B) variability
C) timing
D) magnitude

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