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