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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