Which of the Following Is NOT a Weakness of the Payback

question 38

Multiple Choice

Which of the following is NOT a weakness of the payback method of capital budgeting?

• A)There is no EXPLICIT time value of money calculation.
• B)There is no attempt to distinguish between cash flows in the earlier years and cash flows in the later years.
• C)It does not given any consideration to cash flows expected to occur beyond the payback period.
• D)All of the above are weaknesses with the payback period method.

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Community Health Nurse

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