Multiple Choice
Although quick and easy to apply, the payback method is deficient. In that it:
A) disregards the time value of money.
B) it assumes that inflows are reinvested at the internal rate of return until the end of the project's life.
C) disregards cash flows after the payback period.
D) a and c
Correct Answer:
Verified
Correct Answer:
Verified
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