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One of the disadvantages of Payback Period is that is does not consider cash flows after payback. Question: If you were evaluating multiple investment opportunities
One of the disadvantages of Payback Period is that is does not consider cash flows after payback.
Question: If you were evaluating multiple investment opportunities and could only pick one, would you think it important to understand the cash flows for the entire project (i.e., including those after payback)? If yes, which other capital budgeting analysis tool would you use to evaluate your decision?
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