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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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