Which of the Following Is a True Statement About the Use

question 32

Multiple Choice

Which of the following is a true statement about the use of the payback period technique in capital budgeting?

• A) It is simple to use and understand.
• B) It considers the time value of money.
• C) It is not possible to appraise risk with this technique.
• D) It is mainly used to measure profitability of a project.

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