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    Foundations of Finance
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    Exam 10: Capital-Budgeting Techniques and Practice
  5. Question
    A Significant Disadvantage of the Payback Period Is That It
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A Significant Disadvantage of the Payback Period Is That It

Question 116

Question 116

Multiple Choice

A significant disadvantage of the payback period is that it


A) is complicated to explain.
B) increases firm risk.
C) does not properly consider the time value of money.
D) provides a measure of liquidity.

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