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Which of the following is true about the payback method? The payback period is the amount of time it takes for a project's net cash

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Which of the following is true about the payback method? The payback period is the amount of time it takes for a project's net cash inflows to recover the project's initial investment It cannot be used for projects whose cash flows change from year to year A project's payback period increases as its cost of capital decreases It measures the true profitability of an investment

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