Multiple Choice
Which of the following is not an advantage of the payback method of capital budgeting?
A) It can be used to separate investments when other methods show similar returns.
B) The sooner cash is recovered the sooner it can be reinvested.
C) A quick payback period reduces the risk of the investment.
D) It looks at returns over the whole life of the investment.
Correct Answer:
Verified
Correct Answer:
Verified
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