One of the most popular capital budgeting techniques is the payback method. How does this method work?

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One of the most popular capital budgeting techniques is the payback method. How does this method work? Give an example.

Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the...
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