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Which of the following represents a potential drawback of using the payback period calculation for the capital budgeting decisions?

Which of the following represents a potential drawback of using the payback period calculation for the capital budgeting decisions?


A project is accepted if its payback period is below some pre-specified threshold.


The rule does not consider cash flows after the payback period


The technique can serve as a risk indicator


All of the Above

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The rule does not consider... View the full answer

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The rule does not consider... View the full answer

The answer is... View the full answer

The payback period indicated the time it takes to recover the initial... View the full answer

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