Question: We use payback period as one method to determine whether of not to undertake a projects. It is a simple method that works well for

We use payback period as one method to determine whether of not to undertake a projects. It is a simple method that works well for small investments. It does have weaknesses which include the following EXCEPT:

Question 20 options:

a

the appropriate payback period is subjectively determined

b

it does not incorporate the time value of money

c

it does not recognize all cash flows

d

it only works with smaller costs of capital

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