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Payback Is Frequently Used to Analyze Independent Projects Because

Question 50

Multiple Choice

Payback is frequently used to analyze independent projects because:


A) it is easy and quick to calculate.
B) all relevant cash flows are included in the analysis.
C) it considers the time value of money.
D) it is the most desirable of all the available analytical methods from a financial perspective.
E) it produces better decisions than those made using either NPV or IRR.

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