The primary justification for using the payback method over other capital budgeting techniques is that it ignores

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The primary justification for using the payback method over other capital budgeting techniques is that

it ignores cash flows beyond the payback period.

it incorporates risk into the discount rate used to solve the payback period.

it always leads to decisions that maximize the value of the firm.

it directly accounts for the time value of money.

it is the simplest and oldest formal model to evaluate capital budgeting model.

Posted Date: Jun 07, 2024 07:15 AM

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The primary justification for using the payback method over other capital budgeting techniques is that it ignores

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