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A significant flaw in the payback method of capital budgeting is that____________ Question 23 options: A. it is calculated using arithmetic average instead of weighted

A significant flaw in the payback method of capital budgeting is that____________

Question 23 options:

A.

it is calculated using arithmetic average instead of weighted moving average.

B.

it assumes future cash flows are reinvested at the IRR.

C.

it ignores cash flows following the payback period.

D.

it only calculates present values prior to comparing them to investment amount.

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