The cost of equity for the Jaclyn Company is 16% and the pre-tax cost of debt is 15%. Forty percent of its capital is in the form of ordinary shares and the other sixty percent consists of debt. The tax rate is 40%. The weighted average cost of capital would be 15.4%. 12.5%. 15.5%. 11.8%. What weakness does the payback method have that is not present in the NPV method? The payback method is easier to understand. Initial cash flows are ignored. It ignores cash flows after payback. o oo The minimum acceptable payback has to be estimated