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Which of the following situations would warrant use of the non-discounted Payback Method of valuation? A. Plant expansion that will double annual production capacity. B.

Which of the following situations would warrant use of the non-discounted Payback Method of valuation?

A.

Plant expansion that will double annual production capacity.

B.

Acquisition of a low-cost machine that will generate immediate cost savings.

C.

Multi-year development of potential offshore oil and gas reserves.

D.

Acquisition of the major supplier of components used in your firm's product manufacturing operation.

E.

Program to replace a fleet of tour buses for a large travel company.

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