Which of the Following Is a Limitation of the Payback

question 56

Multiple Choice

Which of the following is a limitation of the payback period?

• A)This method includes an internal rate of return that is usually less than the required rate of return.
• B)The cash flows after the payback period needed for the calculation are not easy to estimate.
• C)This method ignores the time value of money.
• D)The discount rate used in the calculation often changes.

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