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Which of These Is Not an Advantage of the Payback

Question 33

Multiple Choice

Which of these 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) It looks at returns over the whole life of the investment.
D) A quick payback period reduces the risk of the investment.

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