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1. Payback period is one of the nondiscounting models used in capital investment decisions. What are some of the pros and cons associated with this

1. Payback period is one of the nondiscounting models used in capital investment decisions. What are some of the pros and cons associated with this model?

2. What is a capital investment and why do companies need to evaluate whether to make the investment or not?

3. Why do come companies prefer to use discounting in their capital investment decisions? What is a risk associated with this discounting model?

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