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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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