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Investment analysis using the payback method is: a . Not a useful method of assessing investment profitability. b . Conducted by expressing the actuarial interest
Investment analysis using the payback method is:
a Not a useful method of assessing investment profitability.
b Conducted by expressing the actuarial interest rate on an annual basis.
c Relevant for firms with low liquidity that must concentrate on quick recovery of cash from an investment.
d A way to directly account for compounding effects over a specific number of conversion periods per year.
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