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Which of the following statements about the payback period are true? The payback period is equal to the present value of all cash inflows divided
Which of the following statements about the payback period are true?
The payback period is equal to the present value of all cash inflows divided by the present value of all cash outflows.
The payback period ignores time value of money and any cash flows after the initial outlay has been reached.
The payback period is mainly used by large corporations that have access to large amounts of capital.
One of the benefits of the payback period is that it is easy to calculate and understand.
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