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Why is the payback period often criticized? A It ignores the cash flows after the end of the payback period. B It is based on

Why is the payback period often criticized?

A It ignores the cash flows after the end of the payback period.

B It is based on accounting income, which most likely differs from the actual cash flows.

C It requires trial and error to determine the quantitative amount on which to make a decision.

D It requires the estimate of a hurdle rate that is subject to uncertain economic effects.

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