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Which of the following is incorrect regarding the payback period method? The payback period ignores the time period beyond the payback period. Payback analysis ignores

Which of the following is incorrect regarding the payback period method?

The payback period ignores the time period beyond the payback period.

Payback analysis ignores the time value of money.

When using payback analysis for investment decisions, one rule is to select the shortest payback period investment.

The formula for the payback period is: Payback period = Initial cash outlay/Annual amount of investment

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