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In Considering the Payback Period

Question 7

Multiple Choice

In considering the payback period:


A) The maximum period allowed by a firm is a specific time period based on objective criteria.
B) It considers the time value of money in determining the maximum allowable time period.
C) It gives some indication of a project's desirability from a liquidity viewpoint.
D) It is based on cash flows both during and after the payback period.

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