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The formula has the advantage of being easy to calculate, but a distinct disadvantage of not considering the time value of money. If a project
The formula has the advantage of being easy to calculate, but a distinct disadvantage of not considering the time value of money. If a project takes a long time to recover the initial cost, the time value of the funds should be a large consideration.
Besides capital budgeting, when can the payback period calculation be useful?
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