The Cash Payback

question 55

Multiple Choice

The cash payback

• A)technique is a quick way to calculate a project's net present value.
• B)period is calculated by dividing the annual cash inflow by the cost of the capital investment.
• C)method is frequently used as a screening tool but it does not take into consideration the long-term profitability of a project.
• D)the longer the payback period the more attractive the investment.

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