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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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