Question: How does depreciation affect the calculation of a projects payback period? 1)Depreciation does not affect the payback calculation 2)depreciation is deducted from the annual cash

How does depreciation affect the calculation of a projects payback period?

1)Depreciation does not affect the payback calculation

2)depreciation is deducted from the annual cash inflows

3) depreciation is only deducted if the payback period exceeds five years.

4) depreciation is added to the annual cash inflows

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