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We use payback period as one method to determine whether or not to undertake a project. It is a simple method that works well for

We use payback period as one method to determine whether or not to undertake a project. It is a simple method that works well for small investments. It does have weaknesses which include the following EXCEPT: Question 16 options: 


it does not always recognize all cash flows 


it does not incorporate the time value of money 


it works best when interest rates are high 


the appropriate payback period is subjectively determined

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